10 February 2020 - The
US Solar PV Market is estimated to
reach an installed capacity of 60 GW by 2022. The rising demand for electricity
coupled with increasing consumer awareness concerning the benefits of renewable
resources is anticipated to have a positive impact on the market growth. The
increasing demand for solar PV panels in commercial and residential applications
is expected to drive market growth.
A solar photovoltaic system
generates electricity from sunlight with the help of semiconductors. The
electrons in these materials are freed by sunlight and can be induced through
an electric circuit to generate electricity. The growth of solar PV technology
is fastest as compared to other renewable energy sources owing to free
availability of sunlight.
The government subsidies and
regulations are beneficial to the market growth. In addition, the growth in the
number of solar panel installations mainly in California has caused a steep
decline in the module prices. The decrease in the price of raw materials
coupled with advanced manufacturing processes is anticipated to have a positive
impact on the growth of U.S. solar PV market.
The application segments
namely, residential, utility and commercial/non-residential are anticipated to
increase substantially on account of the Investment Tax Credit (ITC) subsidy
till 2016. In 2016, the US solar market grew by 97% adding about 15GW of new
capacity. The electricity provided by solar energy accounted for over 39% of
the total installed electric capacity in 2016.
The residential segment
witnessed a substantial growth in the upcoming years owing to the increasing
concern of consumers regarding the protection of environment together with
decreased cost of the module. In addition, the cost of maintenance of solar PV
is low as compared to other sources of power generation which have led to an
increase in demand for the modules.
The reduction in carbon
emission during the generation of electricity as compared to other sources
together with the variable sizes available in solar PV modules is expected to
have a positive impact on the market growth. In addition, the availability of
solar insolation across the US is anticipated to aid the demand of solar PV
modules in the country.
Application Insights
The utility segment
contributed to over 50% of the overall U.S. solar PV market installations in
2014. The development of technology has increased the efficiency of electricity
generation by solar PV modules coupled with low installation cost owing to
government subsidies is expected to drive market growth.
The commercial application
segment is expected to witness a growth at CAGR of around 14% over the forecast
period. The shift in consumer inclination towards the utilization of renewable
energy for electricity generation owing to environmental protection is likely
to fuel solar PV market growth in U.S.
State Insights
California contributed to over
7,815 MW power in 2014 on account of the exposure to solar radiation together
with growing number of installations in residential and utility sectors. In
addition, there is a sharp decline in the cost of equipment owing to
large-scale installations of solar PV which is expected to lead market growth.
California accounts for over
50% of the residential segment of the solar PV system installations followed by
New Jersey and Arizona. There is a significant decline in raw material prices
owing to technological advancements and bulk ordering from China. The extension
of federal ITC is likely to propel market demand of solar PV in the country.
The favorable energy policies
in California is likely to propel growth for renewable energy leading to a rise
in market demand for solar PV modules. The preference of consumers in Arizona
and California towards the use of environmentally friendly renewable energy is
expected to bolster the solar PV market demand.
North Carolina is likely to
have an increase in the contribution towards US solar market owing to a growth
in residential installations. Furthermore, the high cost of power in North
Carolina as compared to other states including Louisiana, Washington, and
Kentucky is likely to boost market growth in the region.
Competitive Insights
The major players in the
industry include SunPower, 1Soltech, Advance Power, BORG Inc., Solar Cynergy,
Zebra Energy, Lumos, First Solar, Suniva, Alps Technology, Auxin Solar, Pionis
Energy, Green Brilliance, Solar World, Itek Energy.
First Solar utilizes cadmium
telluride (CdTe) thin film technology which gives high efficiency as compared
to monocrystalline and polycrystalline modules. Moreover, the production costs
are subordinate to other modules making it advantageous among all solar PV
installers.
Market Segment:
U.S. Solar PV Application Outlook (Installed Capacity, GW; Shipments,
Units, 2012 - 2022)
• Residential
• Non-Residential
• Utility
U.S. Solar PV State Outlook (Installed Capacity, GW; Shipments, Units,
2012 - 2022)
• California
• Arizona
• New Jersey
• North Carolina
• Nevada
• Massachusetts
• Hawaii
• Colorado
• New York
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