US photo voltaic capability is anticipated to develop from 129 GW in the present day to 336 GW by 2027, in keeping with the Photo voltaic Vitality Industries Affiliation and Wooden Mackenzie.
From pv magazine USA
The Photo voltaic Vitality Industries Affiliation (SEIA) and Wooden Mackenzie mentioned in a brand new report that put in and operational photo voltaic capability may surge from 129 GW at current to 335 GW by 2027.
Regardless of this fast development, projections for this yr have been trimmed to fifteen.7 GW because of the lingering results of the US Division of Commerce’s investigation into antidumping violations by main worldwide photo voltaic panel suppliers. Ongoing worldwide commerce and labor considerations, together with the Uyghur Pressured Labor Prevention Act (UFLPA), may proceed to problem provide and restrict deployment in 2023. The total advantages of the IRA won’t be mirrored in deployment till 2024 at earliest, mentioned the report.
Photo voltaic accounted for 39% of all new capability additions within the first half of 2022. The US photo voltaic market now represents about 4.5% of the nation’s electrical energy combine. Maybe essentially the most vital improvement within the Inflation Discount Act for the photo voltaic business was the long-term extension of the Funding Tax Credit score (ITC) at 30%.
“The Inflation Discount Act has given the photo voltaic business essentially the most long-term certainty it has ever had,” mentioned Michelle Davis, principal analyst at Wooden Mackenzie and lead creator of the report. “Ten years of funding tax credit stands in stark distinction to the one-, two-, or five-year extensions that the business has skilled within the final decade. It’s not an overstatement to say that the IRA will result in a brand new period for the US photo voltaic business.”
For the fifth quarter in a row, residential photo voltaic had report deployment with 1.36 GW put in, a 37% enhance over the second quarter of 2021. This represents almost 180,000 residential prospects putting in photo voltaic in a single quarter. The report mentioned buyer demand was robust due partially to energy outages and to energy worth will increase. Residential photo voltaic installations might drop barely subsequent yr as California’s NEM 3.0 coverage takes impact.
Business photo voltaic put in 336 MW within the second quarter, down 7% yr on yr, whereas 2.7 GW of utility-scale photo voltaic was deployed, down 25% lower from the second quarter of 2021. The extension and enlargement of the ITC and different provisions within the IRA boosted Wooden Mackenzie’s five-year outlook by 52 GW (47%) over earlier projections.
Group photo voltaic deployment tasks had been lifted by 18% in comparison with the earlier outlook. President Joe Biden’s govt order has introduced aid to the business, however a lot of the additions come from Maine and New York. The 2 states accounted for 72% of the group photo voltaic capability additions within the first half of 2022. In Maine, Web Vitality Billing (NEB) tasks that aren’t wrapped up within the state’s interconnection research are coming on-line at a quick tempo. In New York, Group Adder tasks proceed to come back on-line, with a wholesome pipeline remaining.
System costs continued to climb within the second quarter throughout market segments, principally resulting from module worth will increase. System pricing elevated yr on yr by 9% for residential, 8% for industrial, 8% for utility fixed-tilt, and 13% for utility single-axis monitoring photo voltaic tasks.