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Breakout year expected as US solar sector posts 37% growth

SolarCity, which installed this system at eBay's HQ, said demand was allowing it to grow aggressively, but growth slowed for commercial projects nationally

The solar industry is expecting 2010 to be a “breakout year”, as new figures showed strong growth in 2009, despite the recession – particularly in the residential market.

Some 17,000 new jobs were created directly or indirectly by the solar industry as the nation’s generating capacity grew by 37%, pushing through the 2,000MW barrier for total output.

The pipeline of developments lined up in the US also suggests strong years ahead.

Growth last year was driven by federal and state incentives and a 40% drop in photovoltaic module prices, according to the Solar Energy Industries Association, which published the figures this week.

Revenues in the US solar industry grew by 36% compared to 2008 to more than $4 billion.

Rhone Resch, SEIA president and CEO, said: “Building off the successes of 2009, we expect 2010 to be a breakout year for the U.S. solar industry.”

“The right policies and industry innovation continue to drive solar’s growth across America. Now we’re talking gigawatts of solar, not megawatts.”

Manufacturing

Domestic manufacturing achieved a 7% growth last year, through difficult economic conditions worldwide.

But, the US is now a distance behind other countries in its domestic production of solar modules.

China and Taiwan now account for 38% of the world market for solar modules, while Europe and Japan are also outpacing the States, with US manufacturers providing just 7% of the global market.

Installations

Growth in solar generating capacity in the US last year was led by homeowners, who doubled the number of residential solar systems bought in the year, from 78 megawatts (MW) in 2008 to 156MW last year.

Reflecting the economic downturn, however, the number of US businesses turning to solar power was 2% down on 2008, with 207MW of new installations compared to 211MW in 2008.

Solar pool heating installations – down 10% on the previous year – were also hit by the global financial slowdown, since installations are particularly tied to the property market.

But, solar water heating additions grew by 10% over the previous year.

Utilities achieved a tripling in the development of new grid-tied photovoltaic plants with a 66MW increase compared to 22MW in 2008. Three new concentrating solar plants added 12MW of new generating capacity to bring the US up to 432MW of CSP capacity, more than any other country.

Mr Resch said: “When the President looks back at how stimulus dollars were invested, he’s going to see that solar was one of the best returns on investments in 2009 for the American taxpayers.

“In addition to strong policies at the state and federal level, solar’s growth was driven by the emergence of new business models and declining prices. Consumers took notice that now is the best time to go solar.”

States

Among the US States, California dominated growth in solar installations, bringing 220MW of new systems online compared to 57MW for its nearest rival, New Jersey.

Pushing for its 33% renewable energy target, California accounts for two thirds of all American solar generating capacity connected to the grid with 1,102MW total output.

California-based installers SolarCity, said: “SolarCity grew aggressively in 2009 based on increasing demand for its full-service solar offering.

“The company has added close to 300 new workers in the last 12 months and has now completed or undertaken more than 7,000 solar projects.”

New Jersey now has 128MW installed capacity, while Nevada is third with 100MW installed capacity, although that state was not among the best for new installations in 2009.

Florida, Arizona and Colorado rounded out the top five States for new installations.

Pipeline

The SEIA said the pipeline of projects now in development suggested solar photovoltaic sector was now “poised to go big”.

Demand for solar power is growing at a tremendous rate” - Ron Kenedi, Sharp Solar

More than 6,500MW of utility-scale projects are now in the works, with some of the largest projects in the world set to break ground this year.

Rooftop installations are forecast to remain strong, while the SEIA said there is now dozens of large concentrating solar projects in development, offering a potential 10,500MW of new capacity.

“Demand for solar power is growing at a tremendous rate,” said Ron Kenedi, Vice President of the Solar Energy Solutions Group of Sharp.

“Our residential, governmental, commercial and utility customers want clean and reliable power. We have responded to this demand, and in doing so, have created a wealth of high tech jobs here in the U.S.”