Q2 Report: U.S. Solar Capacity Maintains Growth

Renewable Energy World Editors
September 20, 2011 | 3 Comments

The American solar market remains on pace to double last year's installed capacity by the end of 2011 behind large gains in the utility and commercial markets.

According to a report released Tuesday by GTM Research and the Solar Energy Industries Association (SEIA), the U.S. remains poised to install 1,750 megawatts of PV in 2011. The PV market bolstered the second quarter numbers with 314 megawatts of new capacity, a 69 percent rise over the same period last year and a 17 percent jump over the first quarter of 2011.

The utility market saw 37 percent growth in the second quarter while the commercial market increased 22 percent. The residential market fell 5.7 percent, its second straight quarterly drop. The report predicts the residential market will expand in the second half of next year and throughout 2012 as solar-leasing business models spread nationwide.

The spike in installations has coincided with this summer’s widely reported difficulties in domestic manufacturing. A slowdown in global demand led U.S. module production to fall 11 percent from the first quarter to 333 MW.

GTM Research Managing Director Shayle Kann said the potential expiration of the 1603 Treasury program could slow installation growth in 2012. And he pointed to markets in New Jersey and Pennsylvania as areas that may struggle to achieve growth. Still, he says the emergence of large-scale solar should help the U.S. triple its share of global installations over the next four years.

Other key findings include:

Cumulative grid-connected PV in the U.S. has now reached 2.7 gigawatts.
For the first time, New Jersey's commercial market exceeded California's, making it the largest commercial market in the country.
Six states installed more than 10 MW each in the second quarter, compared to only three states in all of 2007.
Weaker-than-expected global demand conditions also led to a price decline in Q2, with wafer and cell prices each dropping 25 percent and module prices falling 12 percent on the quarter.
In total, more than 600 MW of CSP and CPV are now under construction in the U.S.

3 Comments

Yogesh Bahadur
September 23, 2011

Well sir, I knew someone would raise that question; but didn't expect that to be the first one!

Well, you could possibly be American; but my answer is that politics of my country and yours (if this is true!))is not in my hands to forge focus this way or that! Yes, I have optimism in US/European collaborations to muster organic pragmatism in a cost driven market like India!!

In India, we have a miserable record of solar compared to US/Europe and even China, sans abundance and HIGHEST solar radiation to tap from!

In hydropower (counting it in Renewable Energy!), we are seriously lagging behind. Nuclear & Coal Thermal have been the pick of government, public sector and what bureaucrats here have been actually acting upon! The talk of Renewables is always filled with more passion than actions actually demonstrate at conclaves bringing us professionals to see logic of important & eloquent panelists!

I am fully with you though! But how do I convince my ever so directly ROI driven financial drivers of business houses who have been geared over last decade to believe India is future economic powerhouse or even superpower by strengthening balance sheets, GDP growth & 'power for all' by 2017?

The increasing interest rates, a continually depreciating Rupee do not foster SOLAR OPTIMISM when overplaying success in Wind Energy & underplaying any real growth in Hydro against 'coal' are all signs that would tend to 'hold my pencil' firm and 'go with the flow'!

Technology pace led by innovation needs first capital (that's not the difficult part) and then perhaps......some failures like we see in shortage of coal, gas and climate change...might well tip us for Solar sooner than I would actually be optimistic for!

But yes, offer me a lending hand; please do connect through Linkedin or write to me y.power007@gmail.com.

Gary McCallum
September 23, 2011

Interesting comment above except for the nuclear aspect. Why would India want nuclear with such intense and abundant sunshine. In a renewable energy context solar should be the primary solution.

Yogesh Bahadur
September 22, 2011

One of the key issues that could trouble US Solar manufacturers who have included high volume exports provisions within their established capacity, would be continued dip in demand from countries like India, middle-east and Latin America. Although reasons could be very different in each case, a volatile money market, political turmoils, natural calamities and depreciating currencies in target markets, would generally have to be watched closely.

Coming from India, I am particularly inclined to suggest, that US must seriously consider subsidizing their nuclear related exports with bilateral solar ventures in these countries who have very little in terms of success from solar at par with developed western countries.

Such subsidy would surely pay back US in multiples to generate interest in clean energy from solar in India and other countries to up the demand for solar manufacturers in US or to have them set shops in these countries too; while also making it politically look more sensible to use more nuclear power for electricity generation from local governments perspective!

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Renewable Energy World's network editors help deliver the most comprehensive news coverage of the renewable energy industries. Based in the U.S. and the UK, the team is comprised of editors from Pennwell Corporation's myriad of publications...