2011 Was a Record Year for Solar Power in the U.S.

Photo: Gehrlinger Solar
A new report by the Solar Energy Industries Association (SEIA) reveals that the U.S. solar energy industry installed a record 1,855 MW of photovoltaic capacity in 2011. The figure is more than the double of the previous annual record of 887 MW recorded in 2010 and represents a 109 percent growth rate in 2011.

To get a better idea of how much added electricity that is, it could power 370,000 homes. It is the first time the U.S. solar market has installed more than one GW (1,000 MW) in a single year. In the fourth quarter of 2011 alone, the industry installed 755 MW, up 115 percent from Q4 2010, for a second consecutive record-breaking quarter. GTM Research and the Solar Energy Industries Association estimate the U.S. solar market’s total value surpassed $8.4 billion in 2011.

Such formidable growth is explained mainly by falling prices. The cost of installed solar photovoltaic (PV) systems fell 20 percent last year on the back of lower component costs, improved installation efficiency, expanded financing options, and a shift toward larger systems nationwide. Besides, the anticipated expiration of the U.S. government’s 1603 Treasury Program, which ended on December 31, 2011, prompted developers to commission projects before the end of the year.

The report also provides an update on the concentrating solar power (CSP) market. While no new concentrating solar thermal electric capacity was brought online in 2011, a total of 10 concentrating photovoltaic projects came online. The year also saw meaningful construction progress on a number of projects with some capacity expected to come online later in 2012 and a surge in 2013. Today, more than 1,000 MW of CSP are under construction, enough to power 200,000 homes.

By the end of 2011, cumulative PV capacity in the U.S. reached nearly 4,000 MW and cumulative CSP capacity topped 500 MW. Together this represents enough solar capacity to power nearly a million households.

“In 2011, the market demonstrated why the U.S. is becoming a center of attention for global solar,” said Shayle Kann, managing director of GTM Research’s solar practice. “It was the first year with meaningful volumes of large-scale PV installations; there were 28 individual PV projects over 10 megawatts in 2011, up from only two in 2009. Furthermore, the market continued to diversify nationally; eight states installed more than 50 megawatts of solar each last year, compared to just five in 2010. These are all indicators of a vibrant market.”

The report also found that 800 MW were installed in the commercial sector in 2011, led by the California and New Jersey markets, compared to 758 MW of utility PV and 297 MW of residential installations. Utility-scale project installations, primarily across states in the Southwest, nearly tripled 2010 totals. In the residential sector, California installed 114 MW, with New Jersey, Arizona, Hawaii, Pennsylvania and Colorado each contributing meaningfully to the residential total.

2012 is set to replicate the success of 2011 for the PV industry, with more than 2,800 megawatts in installations forecasted.

“The solar industry is the fastest growing industry in America for the second year in a row. What we are seeing in the U.S. is that policies are working to open new markets and remove barriers for solar,” said Rhone Resch, president and CEO of SEIA. “The industry is now poised for years of multi-gigawatt growth and the creation of tens of thousands of new jobs. But we face a number of challenges that have the potential to slow this growth. That is why SEIA now is coordinating the industry’s federal and state policy initiatives to present a unified, cohesive voice for the solar industry.”

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Antonio Pasolini

London-based, Italo-Brazilian journalist and friend of the earth.

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