A frequently cited analysis by Wood Mackenzie identifies single-axis trackers (SAT) as the most economical configuration for many utility-scale PV projects. This assessment is based primarily on the higher specific energy yield achieved by tracking the sun. However, in light of today’s cost structures, market dynamics and system constraints, a more nuanced evaluation is necessary.
For many years, the economic logic was clear: Modules accounted for the largest share of total PV system costs, so it made financial sense to extract as many kilowatt-hours as possible from each installed module. The 15% to 25% yield increase typically attributed to trackers justified the additional steel and mechanical components, wider row spacing, and greater installation and maintenance complexity.
Today, the economics have shifted. PV modules are available at historically low prices, while steel, civil works, logistics, labor and financing account for a growing share of project costs. As a result, the focus is shifting from maximizing yield per module toward optimizing the economics of the entire system. This means considering the efficiency of total capital investment, land use, project risk and, ultimately, usable energy yield and revenue per installed megawatt.
