Summary
Supply chain integration of photovoltaics from feedstock to installation continues to develop. One more example is a California homebuilder partnering with REC Solar in a major development. REC Solar is a unit of REC, a Norwegian feedstock manufacturer which has move down the supply chain to installed products.
Analysis
Another example of the growing integration of photovoltaics and homebuilding took place with a recent announcement of REC Solar partnering with Generation Homes of California to build up to 200 houses with photovoltaic systems.
The total installation would be less than one megawatt, which has become modest by California standards against larger developments by Toll Brothers, Lennar and others in the state. But the entry of REC Solar signals a potential for photovoltaic greater supply chain efficiency. REC Solar is a unit of REC, the Norwegian company that is one of the largest processors of photovoltaic feedstock in the world.
REC's foray into module manufacturing and marketing is one of the first attempts by a feedstock manufacturer to reach down the supply chain from raw material to installed product. If REC can deliver on squeezing out costs in control of the various stages of manufacture down to the challenging small-scale installation of product, it may well compete with Sharp, Kyocera and other PV manufacturers in the lucrative new construction market.
Increased economy of scale, loosening supply and a steady ramping down of California's large incentives are helping to reduce installation costs of single digit kW systems in California to below $7 per watt, which five years ago would have been a good installed price for a megawatt scale system. This will help drive down installation costs across the US.
