Solar Sector Sets Records in 2020, On Course to Quadruple by 2030

Mar 16, 2021 03:32 PM ET
  • The UNITED STATE solar market expanded 43% and also mounted a record 19.2 gigawatts (GWdc) of capacity in 2020, according to the UNITED STATE Solar Market Understanding 2020 Year-in-Review report, released today by the Solar Energy Industries Association (SEIA) and also Wood Mackenzie.

For the 2nd year straight, solar led all modern technologies in new electric-generating capacity included, making up 43%. According to Wood Mackenzie's 10-year projection, the U.S. solar sector will certainly mount a cumulative 324 GWdc of brand-new capacity to reach an overall of 419 GWdc over the following decade.

" After a stagnation in Q2 because of the pandemic, the solar market introduced as well as came roaring back to continue our trajectory as America's leading source of new energy," stated SEIA head of state and also Chief Executive Officer Abigail Ross Receptacle. "The projection shows that by 2030, the equivalent of one in 8 American houses will certainly have solar, yet we still have a long way to go if we wish to reach our objectives in the Solar+ Years. This report makes it clear that wise policies work. The action we take now will certainly identify the pace of our development and whether we utilize solar to sustain our economic climate and also satisfy this climate moment."

The 8 GWdc of new installments in Q4 2020 marks the biggest quarter in U.S. solar history. For perspective, the U.S. solar market included 7.5 GWdc of brand-new capability in all of 2015. New capacity additions in 2020 represent a 43% rise from 2019 as well as damages the U.S. solar market's previous record of 15.1 GWdc embeded in 2016.

This is the first time Wood Mackenzie has actually launched a long-term forecast as part of the U.S. Solar Market Insight report collection. By 2030, Wood Mackenzie is anticipating that the complete operating solar fleet will certainly more than quadruple.

" The recent two-year extension of the investment tax debt (ITC) will drive better solar adoption with 2025," claimed Michelle Davis, elderly expert from Wood Mackenzie. "Engaging economics for dispersed as well as utility-scale solar along with decarbonization commitments from many stakeholders will lead to a spots setup price of over 50 GWdc by the end of the decade."

California, Texas and Florida are the top 3 states for annual solar capacity additions for the 2nd straight year, as well as Virginia joins them as a 4th state installing over 1 GWdc of solar PV. In 2020, 27 states set up over 100 MWdc of brand-new solar capability, a new record.

Key Figures:

  • Residential release was up 11% from 2019, getting to a record 3.1 GW. This was less than the 18% yearly growth in 2019, as household installments were dramatically influenced by the pandemic in the initial fifty percent of 2020.
  • Non-residential setups declined 4% from 2019, with 2 GW installed. The pandemic influenced this sector with postponed project interconnections and also extended growth timelines.
  • There was a historic 6.3 GWdc of utility-scale projects mounted in Q4 2020, bringing the yearly total amount just reluctant of 14 GWdc.
  • A total of 5 GWdc of brand-new energy solar power acquisition agreements were announced in Q4 2020, bringing the volume of project statements in 2020 to 30.6 GWdc and the complete utility-scale contracted pipeline to 69 GWdc.
  • The 2-year expansion of the ITC in the final days of 2020 has led to a 17% boost in deployment in our 2021-- 2025 projection.

Solar Installers, Manufacturers