“Cost Convergence” is a term used in the solar industry referring to the point in time when the cost of energy (per kWh) from PV equals the cost of energy from the local utility.
The forecasts for PV cost convergence timing and price are different in every U.S. city because they depend on multiple factors that vary according to location and often change over time, including:
solar resources (see the map below), the cost of installing a PV system, how you pay for your PV system,
federal and local incentives, and local energy prices.
Modeling and forecasting cost using these variables is important because knowing the timing
and value of your city’s cost convergence under different scenarios can help you prepare for, encourage, and take advantage of local PV market growth. The complexity and interaction of these variables make forecasting
and modeling challenging, especially when political factors such as incentives have a large impact on costs. As a result, this calculator is intended to provide an overview of trends and the impact of key
variables rather than exact cost forecasts.
This PV Cost Convergence Calculator provides a big-picture look at the city-by-city timing of cost convergence for PV energy from 2000 to 2020. The calculator allows local city or utility staff, or other interested parties to understand
the order of magnitude influence of commonly used incentives like grants or rebates, performance incentives, or low interest loans on the levelized cost of solar PV energy. The calculator also allows for a comparison of
reference cost convergence trends to city specific scenarios.
Map of the 25 Solar America Cities and the U.S. Solar Resource Potential
