In more good news for the U.S. solar power sector, a new report from market analysis company NPD Solarbuzz shows the pipeline of solar photovoltaic (PV) projects awaiting completion within the United States has grown by seven percent during the past 12 months, with smaller systems under 30 megawatts (MW) in size increasingly driving growth.
The United States Deal Tracker report predicts this growth will reach double digits in 2014, with installed solar capacity set to exceed 43 gigawatts – enough to power six million homes – making the U.S. solar market the third-largest in the world after China and Japan.
The mega-scale (100MW-plus) projects such as Sempra’s Mesquite Solar complex, and First Solar’s Desert Sunlight and Topaz farms are contributing heavily to the forecast figures in the short-term. However, Michael Barker, senior analyst at NPD Solarbuzz, says new, smaller-scale systems which have quick planning and installation phases are becoming increasingly viable due to lower solar PV system costs in the past 12 months.
“The increase in new solar PV projects being planned or under construction is driving double-digit annual growth forecasts for PV adoption within the United States,” he said.
“Large-scale PV projects exceeding 20 megawatts continue to dominate the pipeline, in terms of installed capacity, stimulated by state-based renewable portfolio mandates.”
A rush by developers to cash in on the U.S. government’s 30 percent Investment Tax Credit (ITC) for megawatt-scale solar PV systems, before it is reduced in 2017 has resulted in many smaller solar PV projects reaching “installed” status more rapidly.
“With just three years remaining until the full tax credit incentive rate declines, solar PV project developers in the United States are now planning to complete projects, or have a significant portion under construction, prior to the 2017 deadline,” according to Christine Beadle, analyst at NPD Solarbuzz. “This deadline is causing a shift in focus to smaller projects that can be completed on shorter timescales.”
