By James Barrie T he US solar energy market will nearly double new installations this year to 14.5 gigawatts. This was led by utility projects that developers scrambled to bring online in anticipation of the expiration of a key federal tax credit. In a the report by GTM Research, a quarterly report that is published in part- nership with the solar industry trade group, the Solar Energy Industries Asso- ciation shows that solar installations increased 24 percent in the first quarter, accounting for 64 percent of all new US electric generating capacity during the period. Utility-scale projects were rushed through last year on the expectation that a key federal tax credit would expire at the end of 2016. That credit, however, was extended by five years at the end of last year. The extension will spur more than 20 GW of additional solar capacity by 2021, GTM said, though the utility-scale market is expected to contract next year and in 2018.
natural gas prices, the report said, pointing to the sharp drop in the price of utility-scale solar in recent years.
Overall prices for all solar systems fell 8.8 percent during the quarter.
Residential solar installations took off in the first quarter up 34 percent from the prior year, but the increase for non-residential systems, for com- mercial and industrial customers, were up an amazing 36 percent for the same period. The top States for increase were California with top spot in the solar market for the quarter, followed by North Carolina, Massachusetts, Nevada and New York.
Utilities in many markets are procuring solar as a hedge against volatile
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JULY 2016 • SPOTLIGHT ON BUSINESS
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