With President Joe Biden in the White House, ink drying on a spate of new climate-focused executive orders and an extension of the federal Investment Tax Credit on the books, the immediate future looks relatively rosy for solar.
The U.S. Energy Information Administration anticipates that renewables will be the fastest-growing source of electricity through midcentury. While solar accounted for about 15 percent of renewable electricity generation in the U.S. in 2020, according to EIA, that will increase to nearly 50 percent by 2050. And solar will be the cheapest form of electricity across the United States by 2030, according to a recently released Wood Mackenzie report. The consultancy expects solar costs to decline 15 to 25 percent over the next 10 years.
In a recent series for Squared, I cataloged some of the technological innovations that could define the next decade for solar. Here, I’ll dig into the macro trends Wood Mackenzie analysts expect to drive the resource's next decade.