Two reports paint a bright picture of the current and future state of the U.S. Solar market.
The U.S. solar energy industry had a banner year in 2010 with the industry’s total market value growing 67% from $3.6 billion in 2009 to $6.0 billion in 2010, according to new figures released by the by the Solar Energy Industries Association (SEIA).
The U.S. Solar Market Insight: Year-in-Review 2010 found that solar was the fastest growing energy sector in 2010, contrasting overall U.S. GDP growth of less than 3%.
In total, 878 megawatts (MW) of photovoltaic (PV) capacity and 78 MW of concentrating solar power (CSP) were installed in the U.S. in 2010. In addition, more than 65,000 homes and businesses added solar water heating (SWH) or solar pool heating (SPH) systems.
The U.S. PV market made the most significant strides in 2010, more than doubling installation totals from 2009. This expansion was driven by the Federal section 1603 Treasury program, completion of significant utility-scale projects, expansion of new state markets and declining technology costs.
The solar industry supported 93,000 renewable energy jobs in 2010, according to the report.
Other highlights include:
- Sixteen states installed more than 10 MW of PV in 2010, up from four states in 2007.
- Utility PV installations more than tripled in 2010 to reach 242 MW, up from 70 MW brought online in 2009.
- U.S. manufacturing of PV components increased substantially year-over-year for wafers (97% growth), cells (81% growth), and modules (62% growth).
- The 75-MW Martin Next Generation Solar Energy Center was completed in 2010; it is the largest U.S. CSP plant to come online in nearly 20 years.
- Cumulative CSP capacity from all 17 operating plants reached 507 MW in 2010.
- For the first time, the federal government approved permits for seven CSP plants on public land, which add 3,560 MW of new capacity.
Record Growth in U.S. Solar Market Expected for 2011
Despite constituting less than 6% of worldwide installations in 2010, the United States is well positioned to become the focus of the global photovoltaic (PV) industry in the coming year, according to a whitepaper released by solar power developer Enfinity.
“The U.S. PV Market in 2011” analyzes the key market drivers in the U.S. solar PV industry and predicts that 2011 will be a vital growth year for the country’s solar market.
The paper identifies three factors that provide the US with long-term potential for sustainable PV market growth:
- The United States is home to an excellent photovoltaic resource. While the Southwest provides the highest insolation, or exposure to the sun’s rays, even northeastern states offer insolation that is, at a minimum, equal to or greater than the resources of Germany.
- There is ample availability of land for PV development. The western states, in particular, have large tracts of open land that could support large PV installations.
- Electricity demand in the United States is the highest in the world. Electricity consumption in the United States is roughly 7.2 times the total in Germany and nearly 15 times as much as Spain. In 2010, U.S. PV installations more than doubled to an estimated 820 MW, up from 435 MW in 2009. While other markets such as Spain, Germany and the Czech Republic have faced drastic shifts, the United States has seen steady, if incremental, year-over-year growth.
Shayle Kann, managing director of solar at GTM Research, said, “It is difficult not to be bullish about the U.S. PV market. The economics have never made more sense. As PV system costs fall, electricity prices rise, and project finance returns to the table, the U.S. market is inching closer to reaching its potential as the center of global PV demand.”
The white paper is available at the link below.
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