The SunShot Prize makes a total of $10 million in cash awards available to the first three teams that repeatedly demonstrate that non-hardware costs, or price to plug in, can be as low as $1 per watt (W) for small-scale photovoltaic (PV) systems on American homes and businesses.
This target represents a decrease in the "soft costs" of solar energy systems -- including permitting, licensing, connecting to the grid and other non-hardware costs -- by more than 65 percent.
By breaking a significant price barrier that was considered unachievable only a decade ago, the winning teams will demonstrate that solar energy is an affordable solution for American families and businesses, the department said in a written statement.
While solar hardware prices have fallen 400 percent in the past four years, the soft costs of installing solar energy systems remain stubbornly high. The SunShot Prize is meant to inspire innovative, sustainable, and verifiable business practices that reduce these soft costs to $1/W. Achieving this target will bring the SunShot goal of $0.60/W for residential system soft costs within reach by the end of the decade.
During Phase I of the competition, winning teams will successfully deploy 5,000 small-scale (2-15 kilowatt) rooftop PV systems with non-hardware costs averaging $1/W.
Phase II, which is intended to assess the business sustainability of the winning teams, calls for the installation of an additional 1,000 qualifying systems. The competition will run through 2015. The first-place winner will receive $7 million, second place will receive $2 million, and third place will receive $1 million for successfully achieving these goals.
In addition to the cash award, the first-place team will officially become The Winner of America's Most Affordable Rooftop Solar prize.
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