The Effect of Photovoltaic Module Efficiency on Installed System Costs and Markets in Residential Rooftop Installations in the United States

In this report, we analyze how efficiencies influence residential PV system installed system costs and break-even module prices using a bottom-up cost model. We show that the cost savings associated with efficiency are much higher for area-constrained rooftop than those which are usage-constrained. We also show that simplified models of how efficiency impacts costs overestimate the value of efficiency compared to bottom-up models, particularly for usage-constrained scenarios. We also estimate the fraction of area-constrained residential rooftops in the United States today and explore how that fraction could change in future scenarios with high levels of electrification.