U.S. Solar Stat of the Week: 2010 Installed Capacity

Section 1603’s anticipated expiration encouraged a 359 MW surge in Q4 2010. Expect the same this year.

Shayle Kann September 07, 2011

Shayle Kann

Senior Vice President, Greentech Media & Head of GTM Research
Greentech Media

Shayle Kann leads GTM Research, the market analysis, advisory and consulting division of Greentech Media. GTM Research analyzes and forecasts the dynamics impacting the transformation of the global electricity sector. An expert on next-generation energy, he has presented at conferences around the world, been featured in publications such as The Economist, New York Times, Wall Street Journal, Washington Post, Forbes, Bloomberg, Reuters, and Financial Times, spoken at Harvard, Yale, MIT and Columbia, and testified in front of the U.S. House of Representatives.

Grid-connected PV installations in the U.S. more than doubled in 2010 to 878 MW, representing 102% growth over 2009 The majority of this growth, 359 MW, took place in Q4, as demand surged with the anticipated expiration of the Section 1603 Treasury Cash Grant on December 31, 2010. The program, which offers cash in lieu of the federal business energy investment tax credit, has since been extended through the end of this year. Therefore, a similar surge can be expected in Q4 2011.

Both the residential and utility markets expanded rapidly in 2010, leading to increased diversity within the PV market. In 2010, the utility, non-residential, and residential market segments each contributed over 25% to total installations. Historically the market has been dominated by non-residential installations which include commercial, public sector, and non-profit projects. Most other major PV markets in the world are centered on a particular market segment; the Japanese market is dominated by residential installations, large-scale PV systems are most common in Spain and Italy, and in Germany, residential and small commercial systems drive demand. This diversity of market segmentation in the U.S. will be a source of value for the market going forward.