The utilization of GaAs in photovoltaic (PV) applications has been hindered by the cost of substrates and processing. This paper examines the cost effectiveness of GaAs cells for use in concentrator modules when produced at the 10 to 50 MW level per year. Information on costs associated with substrates, epitaxial processing, and subsequent device fabrication will be compared to allowable costs as projected by the US Department of Energy (DOE). The high cot of GaAs solar cells can be mitigated by use of low‐cost substrates or high‐concentration systems. The costs then can be accommodated when the production level is sufficiently high to take advantage of economies of scale in device processing and substrate price benefits when procured at high volumes. We have found that development of processing equipment, both for the epitaxial growth and device processing, is the key to obtaining production costs consistent with DOE goals. Successfully achieving these cost goals for GaAs technology at 1000 suns concentration is likely.