US solar market grows 36pc last year
Sunday, 25 July 2010
Despite a challenging domestic economic environment, the US solar market grew 36 per cent in 2009, according to the United States PV Market 2010 from Solarbuzz, part of the NPD Group. This growth was, however, not nearly as strong as the region's 62 per cent growth in 2008. On a global scale, the country was ranked the third largest solar photovoltaic market, behind Germany and Italy, reports Commodity Online.
"2009 marked a year of transformation for the US solar market," noted Craig Stevens, President of Solarbuzz. "Changes in the roles of utility companies, new market entrants, lower cost PV modules from Asia and new direct-to-market approaches became more prevalent. As a result, solar companies doing business in the States will need to adapt quickly to these challenges while also being responsive to frequent adjustments in the fragmented incentive and regulatory environment."
California continues to play a critical lead as the base load state market for the US. The state accounted for 53 per cent of US PV on-grid installations, and is expected to maintain its strong position in 2010. Despite a slowdown in demand from the corporate sector across the US, government, residential and utility growth more than offset this effect. Price cuts in residential installations provided the foundation for steady growth across the country. A wide range of start-up markets in other states are well underway as new PV incentives were launched.
While there are utility barriers to be resolved, including regulatory restrictions on the use of Power Purchase Agreements (PPAs), the central policy thrust over the past 12 months remains positive. Sixteen states and Washington DC have enacted a Renewable Portfolio Standard with solar or DG set-asides to promote PV. Fulfillment of solar set-aside obligations drove around 30 per cent of total on-grid PV installations in 2009.
The large number of state policy initiatives has created a fragmented regulations and incentive environment. Regardless, states are doing their job of stimulating local markets. The dispersed funding sources mean the US market does not does not carry the same level of risk compared to countries driven by a single national policy. Nonetheless, Federal incentives are playing a much larger role in stimulating demand over the next two years.
The systems division of SunPower was the leading company in terms of PV installed for the year. In California, Chevron Energy and SPG Solar performed strongly in 2009 and moved up to the #2 position. Among residential installers in California, REC Solar, SolarCity and Real Goods Solar led the field.
"2009 marked a year of transformation for the US solar market," noted Craig Stevens, President of Solarbuzz. "Changes in the roles of utility companies, new market entrants, lower cost PV modules from Asia and new direct-to-market approaches became more prevalent. As a result, solar companies doing business in the States will need to adapt quickly to these challenges while also being responsive to frequent adjustments in the fragmented incentive and regulatory environment."
California continues to play a critical lead as the base load state market for the US. The state accounted for 53 per cent of US PV on-grid installations, and is expected to maintain its strong position in 2010. Despite a slowdown in demand from the corporate sector across the US, government, residential and utility growth more than offset this effect. Price cuts in residential installations provided the foundation for steady growth across the country. A wide range of start-up markets in other states are well underway as new PV incentives were launched.
While there are utility barriers to be resolved, including regulatory restrictions on the use of Power Purchase Agreements (PPAs), the central policy thrust over the past 12 months remains positive. Sixteen states and Washington DC have enacted a Renewable Portfolio Standard with solar or DG set-asides to promote PV. Fulfillment of solar set-aside obligations drove around 30 per cent of total on-grid PV installations in 2009.
The large number of state policy initiatives has created a fragmented regulations and incentive environment. Regardless, states are doing their job of stimulating local markets. The dispersed funding sources mean the US market does not does not carry the same level of risk compared to countries driven by a single national policy. Nonetheless, Federal incentives are playing a much larger role in stimulating demand over the next two years.
The systems division of SunPower was the leading company in terms of PV installed for the year. In California, Chevron Energy and SPG Solar performed strongly in 2009 and moved up to the #2 position. Among residential installers in California, REC Solar, SolarCity and Real Goods Solar led the field.