Utility Solar Market Drives Q2 Growth as Pandemic Causes Drop in Rooftop Solar Installations

Sep 10, 2020 07:30 PM ET
  • The U.S. solar market remains strong, though pandemic work stoppages remain to create difficulties for distributed solar.

The U.S. solar market set up 3.5 gigawatts (GW) of new solar photovoltaic or pv (PV) capability in Q2 2020, a drop of 6% from Q1 setups. At the same time, utility-scale solar continued to be resilient regardless of the Covid-19 pandemic, standing for 71% of all new solar capability brought online in Q2.

Nonetheless, the U.S. Solar Market Insight Q3 2020 report, launched today by the Solar Energy Industries Association (SEIA) as well as Wood Mackenzie, kept in mind that the household and also non-residential segments saw a significant stagnation in the quarter. Setups were down 23% quarter over quarter in the residential section, as well as 12% quarter over quarter in the non-residential sector, due to restrictions and also shelter-in-place orders enforced to suppress the pandemic.

" The growth we see in this report underscores the resilience of the solar industry as we take care of Covid work stoppages, a battling economic situation, dangerous trade plan and an unsure tax obligation setting," claimed Abigail Ross Hopper, SEIA's president as well as CEO. "Tens of countless our workers have been laid off or furloughed amidst this situation, and also SEIA remains firm in our commitment to eliminate for equitable policy that permits the solar industry to compete and expand our workforce."

Solar made up 37% all new electrical creating capability included the U.S. in the very first fifty percent of 2020, as Texas as well as Florida each mounted over 900 megawatts (MW) throughout dispersed and utility solar in Q2. The report claimed a total amount of 8.7 GWdc of new utility PV power-purchase arrangements were introduced in the 2nd quarter, bringing the contracted pipeline to an overall of 62 GWdc.

" The impact of the pandemic on household solar installations varied significantly by location," said Austin Perea, senior expert at Wood Mackenzie. "States with even more restrictive stay-at-home orders saw substantial decreases in quarterly solar additions, whereas states with less restrictive stay-at-home instructions-- such as Arizona and Texas-- saw marginal if any type of decline in quarterly setups."

Wood Mackenzie projections 37% yearly development in 2020, with 18 GW of brand-new solar installments anticipated. This is a 6% reduction from pre-pandemic forecasts.

Looking in advance, the U.S. solar market is anticipated to install virtually 100 GW from 2021-2025, a 42% increase in the amount of solar set up over the last 5 years.

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