Balancing Higher Tracker Costs With Increased Energy Yields

Trackers have been around for many years, but recent periods of high module prices accelerated their awareness in the market, helping them evolve as a compelling option for mounting solar modules. Now with rock-bottom module prices, those days appear gone for good. But even during these times of volatile and low module price levels, trackers still find a business case – the ability to enhance the system’s power yield still justifies the use of trackers. Moreover, they can bring system flexibility as grid expansion often is not coping with the growth of solar. Nevertheless, trackers incur additional costs compared to fixed-tilt systems.

In terms of cost structure, steel remains a major expense, constituting about 70% of tracker costs, with additional costs for motors, control systems, and software. In terms of CapEx, while a few companies have provided reference price points, they may not essentially reflect the prices of the respective companies. In a presentation published in June 2024, Soltec provided data on the development of ASPs back to 2015 and an estimate for 2025. It said that from 2023, it foresees a “normalization of prices with a price drop expected in all markets driven by increasing module efficiency and tracker technology developments.” (see Key To Maximizing Energy Yield In Utility-Scale Projects)

Antai estimates the typical cost for its tracker systems to be around 0.4 to 0.5 RMB/W. In its pursuit of cost reduction, Antai focuses on optimizing the use of steel and enhancing production and design processes by working closely with suppliers and improving technical drawings. Rodolfo Sejas, PV business development specialist provides a comprehensive breakdown of costs across different mounting types. For fixed tilt structures, costs average between €0.04/W and €0.06/W. Costs for 1P trackers range from €0.07/W to €0.09/W, while 2P trackers are slightly more expensive, ranging from €0.08/W to €0.11/W. Dual-axis trackers that require significantly more steel are even costlier, at about €0.25/W to €0.33/W, reflecting the higher material needs and structural demands.

Gonvarri highlights the variability in tracker costs, depending on the tracker configuration, plant size and module power. Ballpark, the cost for a 1P dual-row tracker ranges from €0.07/W to €0.09/W and may increase by an additional €0.01/W for fully single-row trackers, according to Gonzalo Baselga Navarro, the chief business development officer at Gonvarri Solar Steel (GSS). Nevados outlines the tracker costs in the US as $0.09/W to $0.15/W, with an additional $0.3/W to $0.5/W for the foundation. These costs fluctuate based on variables such as load requirements and leading-edge specifications, which are crucial for ensuring system stability and compliance with regional standards. In regions like New York, where heavy snowfall is common, solar installations must meet a specific ‘leading edge’ requirement, which is the distance between the edge of the solar module and the ground. For example, sites in New York require the foundation to be at least 4 feet high to comply with this code, significantly increasing installation costs since the foundation is one of the most expensive components. To mitigate these costs, Nevados has developed a tracker system capable of meeting the 4-foot leading edge requirement without needing additional engineering or modifications, thereby saving both time and money. Despite its smaller size compared to larger competitors, Nevados remains competitive, notably not charging extra for software but providing a full technology platform, according to Jenya Meydbray, Chief Commercial Officer at Nevados.

The installation concept for the Nevados system addresses the rising installation costs driven by legislation in the US mandating prevailing wages, which are substantially higher than standard rates. To counter increased labor costs, the Nevados system is designed to be adaptable to topography and can accommodate significant tolerances, allowing for the use of low-skilled labor and reducing the need for highly skilled workers, the company said. This adaptability also opens potential avenues for cost reduction, such as pre-off-site assembly, which could lower costs by allowing parts to be shipped and assembled on-site more efficiently. Scorpius notes that the costs for trackers in projects between 10 and 50 MW in India hover around INR 5.5 million. Despite trackers being roughly 10% more expensive than fixed-tilt systems, they provide around 20% more energy generation, presenting a favorable trade-off that could drive wider adoption as the cost gap narrows, according to Shivranjan Jadhav, business development and sales manager at Scorpius.

The text is an excerpt from the latest TaiyangNews Solar Trackers Market Survey 2024, which can be downloaded for free here.