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Published on August 21st, 2013 | by John Farrell

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Local Permitting Makes A Bigger Difference As Solar Gets Cheap

August 21st, 2013 by  



This post originally appeared on ILSR’s Energy Self-Reliant States blog

Going solar keeps getting cheaper, but most of the cost savings have come from less expensive solar panels.  “Soft costs,” like permitting and inspections, are a rising share of the cost of a solar installation.  Several years ago, these permits could increase the cost of a residential solar project (then around $8.00 per Watt) by 5-10% , highlighted in a 2010 study by Sunrun. But as solar gets cheaper, permitting is going to be a much bigger problem.

A recent analysis by Lawrence Berkeley Labs [pdf] illustrates the benefits of streamlining solar permitting rules: it can cut the cost of a 2011 residential solar project (at $6.00 per Watt) by 5-13%, today’s (at $4.00 per Watt) by 8-19%, and tomorrow’s by as much as 40%!

chart solar cost and permitting 2013

The report confirms the earlier Sunrun study with a statistical analysis of actual solar permitting rules and the impact on final installation costs.  It also lends credence to streamlined permitting schemes (like Vermont‘s) and to the broader efforts to improve solar permitting, like Vote Solar’s Project Permit
 





 

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About the Author

directs the Democratic Energy program at ILSR and he focuses on energy policy developments that best expand the benefits of local ownership and dispersed generation of renewable energy. His seminal paper, Democratizing the Electricity System, describes how to blast the roadblocks to distributed renewable energy generation, and how such small-scale renewable energy projects are the key to the biggest strides in renewable energy development.   Farrell also authored the landmark report Energy Self-Reliant States, which serves as the definitive energy atlas for the United States, detailing the state-by-state renewable electricity generation potential. Farrell regularly provides discussion and analysis of distributed renewable energy policy on his blog, Energy Self-Reliant States (energyselfreliantstates.org), and articles are regularly syndicated on Grist and Renewable Energy World.   John Farrell can also be found on Twitter @johnffarrell, or at jfarrell@ilsr.org.



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