The new power systems, comprising tens of thousands of photovoltaic (PV) arrays for homes, schools, businesses and utilities, as well as a handful of large concentrated solar power facilities in places like the Mojave Desert, raised the United States' profile as one of the world's leading adopters of solar power, officials said.
But the future for U.S. solar isn't without its bumps.
New installations of nonresidential solar panels, while accounting for more than 1 GW of power, shrank by 6 percent year over year, a condition caused by a variety of factors "ranging from tight economics to difficulty financing small commercial installations," GTM analysts said in their latest "U.S. Solar Market Insight Report."
Meanwhile, the industry's primary federal support -- the 33 percent investment tax credit (ITC) -- is set to expire at the end of 2016, effectively shifting the cost burden of solar fully to developers and consumers of clean power. And as with other renewable energy resources, solar's future will be affected by the status of state renewable portfolio standards that direct rate-based utilities to produce or acquire a percentage of their power sales from clean energy resources.
Yet, even with those caveats, industry officials and analysts forecast a continued boom in U.S. solar markets over the near term, with a projected 31 percent growth target for 2015. The growth will be fueled by falling costs for solar panels and modules, business model innovation that allows for more flexibility in ownership, favorable political and regulatory environments, and increased access to low-cost capital.
Shayle Kann, senior vice president at GTM Research, noted that in just five years, the U.S. PV market -- which does not include concentrated solar plants -- has witnessed a fourfold expansion, from an estimated $3 billion in 2009 to $13.4 billion last year.
Moreover, solar accounted for 32 percent of the nation's new generating capacity in 2014, beating out both wind energy and coal for the second consecutive year. Only natural gas constituted a greater share of new generating capacity, according to the report.
Read more at U.S. Solar Power Has Banner Year, Despite Market Uncertainties
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