Whenever the discussion of solar cost, the focus is usually on the cost of equipment, like solar panels and inverters. But, according to a recently released report from California solar installation company SunRun, there’s another factor that’s adding up to 30 percent to the solar installation cost: permits. Solar installers across the country are becoming increasingly frustrated with different requirements, even between neighboring counties. So what’s the deal with solar permitting?

In southern California alone, there are roughly 50 different permitting offices with different fees and documentation requirements needed from installers before they can install solar energy systems on homes or businesses. In order to keep up with the complex system, solar installation companies are having to hire workers just to drive from office to office to pay fees and turn in the correct paperwork. For example, Orange County, California installer Verengo Solar Plus has a 15-person staff just to carry out these tedious tasks. That adds to the company’s overall expenses and, in the end, those expenses are passed on to the home and business owners in the installation price.

SunRun’s study suggests that, as the cost of panels and other materials decline, these permitting fees account for more and more of the solar installation cost. According to the report, the permitting process accounted for 13 percent of the installation price in 2007. Today, that figure has ballooned to 33 percent, and if the trend continues, it could account for half of the installation cost within a few years.

In order trim the cost, SunRun’s report offers the following solutions:

• Prize Program: SunRun is suggesting incentives for building permit offices that standardize their process. More specifically, the incentives would reward counties that comply with the Solar American Board of Codes and Standards — a set of permitting standards adopted by the U.S. Energy Department in 2007 under the Solar Energy Technologies Program.
• Online Integration: The study also calls for a n application that allows installers to process permit applications online rather than having to do so in person. This would save the companies money on transportation and would likely enable them to trim down the number of employees needed to handle permits. In the end, this cost reduction measure should be passed down to the home and business owners.
• Standard Pricing: Perhaps most importantly, SunRun wants a uniform pricing formula to calculate the the cost of a permit. As it currently stands, some counties don’t charge a dime for the permits. Others use it as a money grab and charge as much as $2,000.

According to the New York Times, a more uniform process would add a $1 billion stimulus to the solar energy market over the next five years. Coupled with the declining cost of parts and labor, solar installations could soon be affordable everywhere.