How do you calculate solar module manufacturing cost?

Multiply modules produced by the cell+BOM cost per module, apply the yield factor, then add lamination setup. For 1,000 modules at $78 each and 94% yield plus $3,500 setup, total is $76,820, or $76.82 per module.

What is a good cost per solar module?

It depends on wattage — the meaningful number is $/Wp. A $76.82 module at ~450 W is about $0.17/Wp of material-plus-setup, competitive for a mono-PERC line but above the lowest-cost TOPCon gigafactories.

Why does module yield lower the cost in this formula?

Here the yield factor scales the effective material cost that reaches good modules. Note this configuration multiplies BOM by yield%, so verify whether your accounting treats yield as a good-unit divisor or a material multiplier before quoting.

How does batch size affect per-module cost?

The $3,500 setup is fixed, so on 1,000 modules it adds $3.50 each; on 5,000 it adds only $0.70. Longer runs dilute setup, which is why line changeovers hurt small-batch custom orders.

What is the difference between variable and fixed module cost?

Variable cost ($73,320 here) scales with volume — cells, glass, encapsulant, backsheet. Fixed cost ($3,500) is the lamination setup you pay once per run regardless of quantity.

Does this include labor and energy?

No. It covers cell+BOM material, yield, and lamination setup. Add direct labor, line energy, depreciation, and consumables separately for a full factory-gate cost.

Renewable Energy, Solar & Wind Manufacturing calculator

Solar Module Cost Calculator

Solar Module Cost estimates the fully loaded build cost of a PV module run, combining per-module cell and bill-of-materials spend, the yield-adjusted material multiplier, and the fixed lamination line setup. Module manufacturers and NPI cost engineers use it to quote OEM contracts, set a $/Wp floor, and see how yield loss and setup drag the per-unit number. It matters because in a commodity market where modules sell by the watt, a few cents per module decides whether a line is profitable. The split into variable and fixed cost also shows how much a longer run dilutes setup.

What this calculator does

Estimate solar module cost from cell and bill-of-material spend per module, line yield and one-time lamination setup.
A PV plant planner sizing a production run uses it to combine cell and encapsulant cost, flash-test yield and changeover into a module cost.
It computes total run cost as modules x (cell + BOM cost) x yield% plus lamination setup, then divides by modules for a per-unit figure.

Formula used

Total = modules x (cell + BOM cost) x module yield% + lamination setup
Per module = Total / modules produced

Inputs explained

Modules Produced:
Cell + BOM Cost:
Module Yield:
Lamination Line Setup:

How to use the result

Use it when quoting a production run, comparing BOM changes, or checking how batch size dilutes fixed lamination setup.
It captures cell/BOM material, yield, and one setup line only — it excludes labor, energy, depreciation, scrap disposal, and framing/junction-box steps not folded into BOM, so treat it as a material-plus-setup estimate.

Current U.S. benchmarks

The producer price index for copper and brass mill shapes stands at 559.593 (BLS, May 2026), up 76.8% from a year earlier. Quotes priced off last quarter's material cost miss this move. Global copper trades at $13,484 per tonne (IMF via FRED, May 2026).
Industrial electricity averages 8.66 cents per kWh across the U.S. (EIA, Apr 2026), up 5.5% from a year earlier. Energy-intensive steps carry this directly into unit cost.

Common questions

How do you calculate solar module manufacturing cost? Multiply modules produced by the cell+BOM cost per module, apply the yield factor, then add lamination setup. For 1,000 modules at $78 each and 94% yield plus $3,500 setup, total is $76,820, or $76.82 per module.
What is a good cost per solar module? It depends on wattage — the meaningful number is $/Wp. A $76.82 module at ~450 W is about $0.17/Wp of material-plus-setup, competitive for a mono-PERC line but above the lowest-cost TOPCon gigafactories.
Why does module yield lower the cost in this formula? Here the yield factor scales the effective material cost that reaches good modules. Note this configuration multiplies BOM by yield%, so verify whether your accounting treats yield as a good-unit divisor or a material multiplier before quoting.
How does batch size affect per-module cost? The $3,500 setup is fixed, so on 1,000 modules it adds $3.50 each; on 5,000 it adds only $0.70. Longer runs dilute setup, which is why line changeovers hurt small-batch custom orders.
What is the difference between variable and fixed module cost? Variable cost ($73,320 here) scales with volume — cells, glass, encapsulant, backsheet. Fixed cost ($3,500) is the lamination setup you pay once per run regardless of quantity.

Last reviewed 2026-05-12.