Price Breakdown of a 12.3 kWp Photoelectric System in Germany (March 2010)
German Panels - 2.02 Euro/Watt
Inverters - .33 Euro/Watt
Racking - .156 Euro/Watt
Cabling - .038 Euro/Watt
Mechanical installation labor - .195 Euro/Watt
Electrical installation labor - .068 Euro/Watt
Surge Protector - .012 Euro/Watt
Total - 2.819 Euro/Watt
In 2011 system prices came down more than originally expected - from 2724 Euro/kW in Q4 of 2010 to about 2000 Euro/kW in Q4 2011. This represents a 26% drop when we were expecting a 13% drop. Even so the system prices didn't come down as far as the component prices did.
A price breakdown for 2012 could potentially factor in .75 Euro/Watt Chinese panels and .25 Euro/Watt inverters. This gives a new total of 1.469 Euro/Watt. Given favorable financing this price level will allow German PV owners to generate electricity for slightly under 10 cents/kWh. This is lower than the household electricity prices of all the countries in Europe save Bulgaria.
Will we see this price level this year? Who knows... maybe. Current prices are getting quoted out at 1600 to 1800 Euro/kW so we're already in the zone.
Update: Here's a price breakdown for a 5050 Watt system on the Sunelec site.
Canadian Solar 230 W Panels - $1.14/Watt
Cables - .02 $/Watt
Delta Lighting Arrestor - .01 $/Watt
SMA Inverter - .49 $/Watt
Lighting Arrestor - .01 $/Watt
Disconted - .01 $/Watt
Square D DC Disconnect - .03 $/Watt
Total - $1.71/Watt
Not too shabby.