Energy futuresStrong 1Q growth for U.S. solar power, more expected
The United States showed strong first quarter growth in solar panel capacity, increasing installations by 66 percent; the increase in solar capacity is due largely to falling panel prices and developers taking advantage of government incentives that were set to expire in 2010; analysts expect solar panel growth to increase throughout the year
A promising first quarter of installations // Source: purharvest.com
The United States showed strong first quarter growth in solar panel capacity, increasing installations by 66 percent. The increase in solar capacity is due largely to falling panel prices and developers taking advantage of government incentives that were set to expire in 2010.
According to the Solar Energy Industries Association (SEIA), a Washington D.C. based trade group, 252 megawatts of solar power systems were installed in the first quarter of 2011, compared to 152 megawatts during the same period last year. Rhone Resch the president of SEIA, said, “Strong demand continues to make solar one of the fastest- growing industries in the United States.”
Demand has been driven by the decreasing cost to install solar panels due to the lower cost for components, larger economies of scale, and streamlined development and installation processes. In the first quarter of 2011, prices for solar panel fell about 7 percent.
The majority of solar projects that came online this year were initially started in the final months of 2010, when a federal program incentivizing solar was set to expire. The U.S. Treasury grant program reimbursed 30 percent of the costs of building solar panel systems.
In December, the program was extended to December of 2011.
59 percent of solar installations came from commercial and government projects, a 15 percent jump from last year, while residential projects accounted for 28 percent of installations and the remaining 13 percent consisted of utility-scale plants.
New Jersey showed particularly strong growth in solar projects installing forty-two megawatts of capacity, a 49 percent surge over the previous year. The new projects bring the state’s total capacity to 330 megawatts of solar power, but California remains the nation’s leader with 1.1 gigawatts of solar capacity.
Analysts expect solar panel growth to increase throughout the year.
Kann added that the installed capacity of residential, commercial and utility- scale plants could increase by as much as 1.8 gigawatts this year.
