
Main Factors Influencing Balance of System (BOS) Costs
BOS costs in renewable energy projects, particularly in solar and wind systems, are influenced by several key factors. These costs include components other than the primary energy generation units (e.g., solar panels or wind turbines). Here are the main factors that impact BOS costs:
1. Hardware Components
- Non-Module and Inverter Hardware: This includes racking and mounting systems, cabling, transformers, and monitoring systems. Costs can vary based on technology and supplier prices.
- Cabling: DC and AC cables, connectors, and combiner boxes. Quality inconsistencies can lead to rework and increased labor costs.
2. Installation Costs
- Labor Costs: Installation labor for both mechanical and electrical components is a significant factor. Higher labor rates and inefficient installation methods can increase costs.
- Mechanical Installation: Includes access roads, cable routing preparation, and component transport. These costs can be affected by site-specific conditions.
3. Soft Costs
- Permitting and Zoning: Costs associated with obtaining necessary permits and complying with zoning regulations. These costs vary by region and jurisdiction.
- Incentive Application: Costs related to benefiting from support policies and incentives.
- System Design and Customer Acquisition: Costs for ecological surveys, conceptual and detailed design, and securing project rights.
4. Supply Chain and Logistics
- Supply Chain Challenges: Delays and product quality issues can increase labor costs and project timelines.
- Logistics and Contingency Costs: These costs are influenced by transportation efficiencies and unexpected expenses.
5. Project Size and Complexity
- Plant Size: Larger projects tend to reduce BOS costs per kilowatt by allowing mobilization costs to be spread over a larger output.
- Hub Height and Turbine Size: In wind projects, taller towers or larger turbines can increase foundation and erection costs.
By focusing on these areas, developers can optimize BOS costs to improve project efficiency and profitability.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-main-factors-influencing-bos-costs/
