Lower specific energy costs

By oversizing a PV system, a lower cost of delivered energy can be realized (lower $ or €/kWh). The costs for PV modules and racks do increase. However, since this can be achieved without necessarily increasing either the nominal power of other system components, the increased energy production is achieved with a lower $ or €/kW installed cost. This in turn yields in a lower specific cost of energy delivered by the system. Thus, oversizing the system power can significantly increase the annual energy output of a system while there is a slight increase in the installation costs of the overall system.

Oversizing of the PV system power can lower the levelized costs of electricity (€/kWh). While the investment in PV modules and mounting structures rises, other system components often remain unchanged. This increases the energy output disproportionately to the added costs, thus improving the system efficiency.

Oversizing the PV system power increases the energy output without having to adjust all system components accordingly. The additional power causes better utilization of the existing infrastructure and lowers the specific installation and energy costs.