Wood Mackenzie and SEIA release report on US solar market

The 'U.S. Solar Market Insight Q4 2020' report, recently released by Wood Mackenzie and the Solar Energy Industries Association (SEIA) states that solar accounts for 43% of all new electric generating capacity additions through 3Q2020, more than any other electricity source. The report projects a record 19 GW of new solar capacity installations in 2020, representing 43% y/y growth from 2019.

"This report points to the incredible resilience of our companies and workers in the face of the pandemic and continued demand for clean, affordable electricity sources," said Abigail Ross Hopper, president and Chief Executive Officer of the Solar Energy Industries Association. "It also speaks to our ability to support economic growth, even in our darkest moments. While solar will continue to grow, the next administration and Congress have an opportunity to help the solar industry reach its Solar+ Decade goals, creating hundreds of thousands of jobs and tackling the climate crisis."

The residential solar market – which was the hardest hit by the business impacts of the pandemic – beat recovery expectations, growing 14% over 2Q2020 but remained below 1Q2020 levels, the report states.

"Logically, the states with the biggest installation declines in 2Q2020 also had the biggest recoveries in 3Q2020, such as New York and New Jersey where restrictions were substantial," said Michelle Davis, senior analyst at Wood Mackenzie. "Business model adaptations, such as virtual sales tactics and pricing promotions, continued to pay dividends through the summer and fall."

The utility-scale market was the primary driver of 3Q2020 installations with 2.7 GW of new capacity, representing 70% of all solar capacity brought online in 3Q2020, the report states.

Sun Belt states are leading the way on new capacity additions this year, with Texas and Florida both installing more than 2 GW through 3Q2020. For perspective, that is nearly the amount of solar that each of those states installed over 2018 and 2019 combined.

According to the report, the utility-scale project pipeline ballooned to a record 69.2 GW, and the US is now forecast to reach 100 GW of cumulative installed solar capacity by mid-2021.

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Energy Global’s Winter 2020 issue

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Read the article online at: https://www.energyglobal.com/solar/24122020/wood-mackenzie-and-seia-release-report-on-us-solar-market/