67:33 to 32:68 – All in 4 years. Puzzled? This is the PV module to Balance of System(BOS) ratio from 2008 to 2012. According to GTM research, in 2012, the BOS cost(including inverters) accounts for 68 % of the total cost. In 2011, the ratio was 50:50 and in the year before(2010), it was 55:45. The GTM article, which can be accessed here, provides the following breakdown of the BOS cost for 10 MW Fixed Tilt projects in US, for c-Si and CdTe thin film modules in 2012.
Please note the BOS cost difference between the c-Si and CdTe modules. In an environment where every cent makes a difference, Thin Film seems to be at a significant disadvantage. (Download the presentation “Will Thin Films Win in India?” here. This presentation was made by RESolve at the Solarpraxis conference in Berlin, Germany in April 2012)
Reflecting this trend, CERC revised the capex for projects in India to Rs. 8 Crore/MW and the total share of BOS is 58%.
The takeaway from the GTM report is quoted here.
“Given the state of the global solar PV market, much of the industry’s attention has turned to BOS manufacturers to achieve the step-function reductions needed to help solar power deliver energy at or below costs of other generation resources. As a result, BOS manufacturers around the globe are being challenged to offer products at reduced prices, in addition to providing value-added benefits like professional engineering services, highly integrated components and lengthy, robust product warranties.
Not all companies will successfully navigate the next few years. BOS manufacturers are tasked with a difficult set of objectives in order to grow profitably and succeed in a marketplace that expects them to deliver on highly aggressive cost targets within a short period of time. Like the module manufacturer segment, the BOS industry is enduring consolidation amongst companies with complementary offerings and liquidation of other companies that cannot maintain the cost reduction curves in a profitable manner.”