Why are BOS costs so important for future solar installations?

Do you know why Aussies have witnessed a decline in solar installation costs over the years? It is because of the advancement in solar technology and increased competition in the industry. This has helped many homeowners, businesses, and utility companies adopt solar energy.

Although, this decline is not enough. For many people, solar energy is still expensive. To motivate a larger section of people to opt for solar energy and make it affordable for them, there is a need to reduce the costs in other areas, especially the Balance-of-System. If you don’t know what is BOS, and why it is important to reduce BOS costs, stay with us till the end to find out.

What is BOS?

When people think of solar systems, they focus on the panels only. But many other components contribute to the performance of solar systems. Together, these components are known as the Balance-of-System (BOS). 

BOS refers to all the components and elements that help the solar panel’s efficient functioning, apart from the solar modules. It includes inverters, mounting systems, wiring, labour costs associated with installation, and all other solar appliances. 

They cover all the things which are necessary to convert the solar energy captured by solar panels into usable electricity. Since BOS includes all the essential parts of the solar system, they play a significant role in the total cost of solar installation.

Why are BOS costs important?

BOS costs are as important as solar panels. Let’s look at some of the prime reasons why:

1. It Makes Up a Significant Portion of Total System Costs 

BOS costs account for a large portion of the total cost of a solar installation. It ranges around 10-50% with installation and maintenance costs. These BOS costs vary depending on diverse factors like the technology used in the solar system, weather conditions of solar installation, market segments, etc.

For example, the BOS costs of your residential solar systems will be higher than commercial solar systems. So to make solar energy more accessible and cheaper for more customers, reducing BOS prices is essential. 

2. It Can Affect System Performance

BOS components play a crucial role in the performance of a solar installation. For example, inverters help to convert the direct current generated by the solar panels into alternating current. 

So if you use poor-quality inverters, it can result in system inefficiencies and reduce the overall energy yield of the installation. Similarly, mounting systems that are not properly designed or installed can lead to shading issues, which can further reduce energy production.

3. Impact on the Reliability of the Solar System

Nowadays, most solar systems have a minimum warranty period of 20-30 years. But it doesn’t mean they always work effectively. It means if your solar panel supplier doesn’t pay attention to proper installation or does not use durable components, your system won’t achieve optimum performance throughout this period. Eventually, it will result in costly repairs or replacements. 

Therefore, always choose the solar panel supplier that uses only the best quality BOS components.

4. Affect the Economic Compatibility of Solar Energy

With the continued decline in the price of solar PV modules and government incentives, the solar system has become an effective replacement for grid electricity. But, the high BOS costs prevent most people from opting for it.  

By lowering the price of additional solar components, we can make them more affordable than other energy sources.

So most institutions, including schools and hospitals, will use it for fulfilling daily energy requirements.

How to reduce BOS costs of solar installation? 

We can reduce BOS costs in the following ways:

1. Advancing Technologies

Innovation plays a crucial role in reducing BOS costs. By developing new technologies and materials, companies can create more efficient and cost-effective components that can help to reduce BOS costs. 

For instance, using microinverters, which are small inverters attached to each solar panel, eliminates the need for a central inverter and hence reduces installation and maintenance costs for you.

2. Modular Design

Installing a solar system requires a lot of wiring and equipment. But we use modular designs to reduce BOS costs for you. The modern designs simplify installation and reduce the need for custom engineering. Companies can design modular components to fit together easily, reducing installation time and costs.

3. Streamlined Permitting Processes

Before installing a solar system, you require permits from local and state authorities. This permitting process for solar installations can be time-consuming and expensive, contributing to BOS costs. Streamlining the permitting process can help to reduce BOS costs.

4. Better Installation Efficiency

We use efficient installation practices that can help you reduce labour costs and installation time, which will also lead to reduced BOS costs. As one of the top solar panel installers, we achieve this by standardizing the installation procedures, improving our team training, and using specialized installation equipment.


BOS costs play a vital role in the affordability and performance of solar installations. That is why it’s important to lower them. 

We hope this blog will help you to understand why BOS costs are important for future solar installations.