US expected to add a record 19GW of new solar capacity installations in 2020
December 15, 2020
The solar capacity installations in the US are expected to rise to the tune of 43% this year, according to a new study by the Solar Energy Industries Association (SEIA) and Wood Mackenzie. The increase is expected despite the industry recovering from one of the worst impacts of COVID-19.
The 43% increase translates into 19GW of new solar installed in 2020. This is seen as the confidence in the utility PV segment has surged back per the US Solar Market Insight Q4 2020 report. The study also said that the pandemic did not cause any delay to the PV utility project construction or even announcement of new projects.
Some of the main driving factors that have led to the ramping up of solar procurement include the anticipation of the Investment Tax Credit (ITC) project completion deadline on 31 December 2023 and also as solar as seen as a way to reduce the GHG(greenhouse gases) and meet the renewable energy targets.
The residential market on the other had was impacted by the pandemic. In Q2 installs were down to 617MW, but the made a quick recovery with 738MW installed in the Q3 which was a 14% sequential increase, but still below pre-pandemic levels.
“Logically, the states with the biggest installation declines in Q2 also had the biggest recoveries in Q3, such as New York and New Jersey where restrictions were substantial,” said Michelle Davis, senior analyst at Wood Mackenzie.
Owing to innovations in selling such as virtual sales techniques and increased adoption of digital and online permitting processes, SEIA and Wood Mackenzie forecast 2020 residential installations of more than 3GWdc, up 7% on last year.