US Solar Market on the Rise

12/08/2011

The U.S. Solar Market Insight: Q1 2011 from the Solar Energy Industries Association and GTM Research shows that the solar industry continues to be one of the fastest growing sectors of the economy. Grid-connected photovoltaics grew 66% over the first quarter of 2010, with a cumulative grid-connected solar electric installations have reached more than 2.85 gigawatts (GW), enough to power nearly 600,000 US homes.

We hear it everywhere we go: The US is the next big solar market. And numerous reports are now coming out that corroborate that assertion.

The U.S. Solar Market Insight: Q1 2011 from the Solar Energy Industries Association and GTM Research shows that the solar industry continues to be one of the fastest growing sectors of the economy. Grid-connected photovoltaics grew 66% over the first quarter of 2010, with a cumulative grid-connected solar electric installations have reached more than 2.85 gigawatts (GW), enough to power nearly 600,000 US homes.

Motivating factors

Instrumental in this growth is government support. Extension of the US Treasury program has helped stimulate the US solar industry. Costs are also dropping, indicated by Applied Materials’ third annual solar energy survey results, which showed PV panel prices dropping 70% since 2008 from $4 per watt. Panel costs are expected to reach $1 a watt in the next couple of years, resulting in electricity costs at the same level as traditional sources of residential power (grid parity).

In summarizing the quarterly report data, Shayle Kann, Managing Director of Solar at GTM Research noted that suppliers, distributors and developers see the US market ready to “nearly double its global market share in 2011 and support a greater diversity of installation types than has been previously seen in any leading demand centre."
With analysts predicting that the US will be the top solar market, manufacturers are scrambling to move in and set up shop. Mage Solar, for example, is a German-based company that established its North American headquarters in Dublin, Georgia, where its training centre has already expanded to accommodate greater enrolment than expected in its NABCEP certification courses.

Utility-scale solar power

While much attention is focused on residential and commercial markets, utility scale solar is also taking off in the US. Just two examples are the 500MW Blythe CSP plant obtained a $2.1 billion DOE loan guarantee, and the 30MW Alamosa CPV plant is expected to be completed this year. Additionally, another 1100MW of CSP and CPV are currently under construction.
Slow to launch

The Applied Materials survey pointed out that one-fifth of Americans believe that the US leads the world in solar and they think that solar energy provides more than 5% of US energy consumption. Currently only 1% of energy consumed in the US is generated by solar. But this is likely to change, albeit slowly. An example of sloth-like movement is the fact that nearly 9 months ago, the Obama administration announced plans to install solar PV and solar thermal panels on the White House by spring 2011. It’s now summer and to date nothing has been installed. If we look at the recent survey results, however, we can’t help but think that the pace is quickening.

solarnovus.com

US Solar Market on the Rise

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