US Solar Projects Will Eclipse Wind This Year, Says Duke

Ehren Goossens, Bloomberg
February 06, 2013 | 9 Comments

The U.S. will add more solar power in 2013 than wind energy for the first time as wind projects slump and cheap panels spur demand for photovoltaic systems, according to the head of Duke Energy Corp.'s renewable-energy development unit.

The U.S. may install 3 gigawatts to 4 gigawatts of wind turbines this year, and solar projects will probably exceed that, said Gregory Wolf, president of Duke Energy Renewables. The U.S. added 13.1 gigawatts of wind power last year, beating natural gas for the first time.

U.S. wind projects have come to a near-standstill this year on uncertainty over the fate of a federal tax credit that was set to expire Dec. 31. Wolf anticipates more solar projects going into operation in 2013 than wind farms after panel prices fell more than 60 percent in the last two years.

"I would expect a lot of momentum still on solar," Wolf said in an interview yesterday.

"We really ramped up our solar in 2010," said Wolf. "Today most of the projects are half or less of the cost now than then." Duke Renewables' portfolio of renewable-energy projects exceeds 1.7 gigawatts.

The production tax credit, which provides 2.2 cents a kilowatt-hour for electricity from wind farms, was extended for a year on Jan. 1. With little information about whether it would be renewed, developers raced to complete wind farms by the end of last year and didn't plan new ones.

The U.S. installed about 3.2 gigawatts of solar power last year and may reach 3.9 gigawatts this year, according to data compiled by Bloomberg. Cheap panels and lower construction costs have been aided by policy support that "has been a little more consistent and long-term," Wolf said.

'Green Halo'

Duke invested more than its $500 million target in renewable energy last year, and more than $2.5 billion to date, Wolf said.

"We're not in this business just because we want a green halo for Duke," he said.

The largest U.S. utility owner by market value enters into long-term power purchase agreements for wind and solar plants that have "an attractive profile in terms of risk and returns," Wolf said. "If we find really good projects, we'll see if we can find a way to make them work."

Lead image: US flag overlaid onto wind generators and solar panels , via Shutterstock

9 Comments

Dr. A. Cannara
February 8, 2013

Good.

Richard Viers
February 8, 2013

Stephen: I think you hit it right on the head, they put the cart before the apple, and the cart was full of bull. The big wigs at Solyndra were so anxious to control the market, that they expanded their plants and their material for production before they had a market. One of the greatest lessons ever learned by the American public, at a very big cost. However, that being said. I went to the auction, and picked up some great deals on material handling, computer, laser, and test equipment at about ten cents on the dollar. The dupes at Solyndra had pallets of laptop computers that
they had purchased for top dollar and loaded with software. Of course the software was scrubbed before they went on sale, but the computers were mostly brand new. I have since re sold most and made a decent profit. That is the way the American economy works, not by insuring that you get lots of money spent when there is no obvious market for your products. Solar PV is mostly selling as poly or mono silicon and probably will for some time to come. The thin film market is yet to be viable because of the lower efficiency and the fact that it is more fragile. If you buy enough to really make up the difference, you then have to make sure that you can insure it does not get damaged,and does provide the savings variable that it was supposed to. The USA is not squandering the money, the government is. Those of us who do business with the government sometimes benefit, and sometimes don't. What we pay in taxes and other expenses as a result of the budget woes of the government counter balance the profits in many cases. As a registered vendor for most government agencies ranging from my little local government to the federal government, I see offers for contracting come into my inbox all day long. I also attend many symposiums and seminars that are meant to increase small business access to doing business with the government. Richard Viers
http://alternativeenergyproductsgroup.com/wordpress

Stephen Zeigler
February 8, 2013

The "solar subsidy" in the USA is made hugely high by investing in crazy "change the world" ideas like Solyndra. The Bush administration launched investments like Solyndra because apparently no one could do basic math about the learning curve and cost model curves for Silicon Crystal solar. The Chinese did this simple math and now are far along towards making solar the cheapest new energy source. They are building 35 GWp of new solar by 2015 at subsidies that are expected to be in the $0.02/KWh range. And the price of Si-Solar will keep dropping as the installation learning curve, the smart grid, and the Si production curves move along. So the USA squanders money on wild ideas instead of just doing it.

rolf westgard
February 8, 2013

If only it did pay for itself. From the EIA: subsides per Mboe produced. Oil and gas 28 cents; nuclear $1.79; Wind $32.39; and solar a whopping $63.
Part of the reason for range is that wind and solar still produce very little power over which to spread the billions in subsidies.

Patrick O'Leary
February 8, 2013

Whatever happened to Cambar, in the Carolina's?

Richard Viers
February 8, 2013

As a solar power advocate, I am optimistic about the statement by Duke, as a registered vendor for Duke, I am ecstatic about it. We have been working with Duke on getting PPA's for our clients, and it can be tedious. Solar power is advancing at a great rate now in our area because of the efforts of myself and others who are doing their part to promote and instil a better understanding of how it works,how it saves the planet, and how it pays for itself. Now that prices on materials have fallen, we can show our clients how much faster it will pay for itself. My name is Richard Viers
I advocate for Alternative Energy.
http://alternativeenergyproductsgroup.com/wordpress

rolf westgard
February 7, 2013

You must like those daytime TV shows

Penelope Gray
February 7, 2013

Go, solar! Anyone who can afford a few panels should invest in the sun. All renewable energy should be used first at its point of origin, any extra can go to the grid. Industrial wind sprawl is so environmentally and ecologically destructive and very inefficient. We need to focus on real solutions. I've lived off grid for over twenty eight years on a five hundred watt solar system in northern Maine. Simplify, use less, walk lightly. And perfect those small thorium reactors to power our cities.

rolf westgard
February 7, 2013

Solar more than doubled its US production in 2012. But it is still about one tenth of one percent of our electric energy with the lowest capacity factor of any fuel source.
We have to stay with it. In the next century when fossil fuel supplies really tighten, solar will be important.