It should be no surprise to hear that solar energy is growing at an amazing rate. In fact one would be hard pressed to avoid hearing something about renewable energy in the news. What is surprising is how well it is performing when compared to the U.S. GDP. A report published by Solar Energy Industries Association claims that "the U.S. solar market grew 67% in value in 2010” which is astonishing when compared to a GDP growth of only 2.8%. The study also stated that “grid-connected PV (photovoltaic) installations more than doubled in 2010 to 878 MW (megawatts), representing a 102% growth over 2009”. Globally, that number grew more than 130%. This is certainly encouraging news for the solar manufacturing, solar installers and renewable energy advocates. Here are the top ten solar producing states courtesy of the New York Times:
1. California: 47 percent with 971 MW
2. New Jersey: 14 percent with 293 MW
3. Colorado: 5 percent with 108 MW
4. Arizona: 5 percent with 101 MW
5. Nevada: 5 percent with 97 MW
6. Florida: 4 percent with 73 MW
7. New York: 3 percent with 54 MW
8. Pennsylvania: 3 percent with 54 MW
9. New Mexico: 2 percent with 45 MW
10. North Carolina: 2 percent with 42 MW
If you’re wondering why California is so far ahead, consider what the state has been doing over the last 20 years. In the early part of the last decade, California was the solar king of the hill with around 80% of the U.S. PV market. That has certainly changed; now the golden state only represents about 30%. Comparing the U.S. to the global solar market, the U.S. is currently number 4 behind Germany, Spain and Japan - that's not bad.
The Cost of Solar Systems
According to the Solar Energy Industries Association report for 2010, “the national weighted-average of system prices fell by 20.5% from $6.45/W to $5.13/W”. This is great news for residential and commercial building owners considering an investment in renewable energy. However, 2011 will be a turning point for the U.S. solar industry. This is due, in part, to “the expiration of the Treasury Cash Grant program at the end of 2011, as well as the potential rescission of the Federal Loan Guarantee”. In addition, the incentives put in place to stimulate the installation of new solar systems are beginning to wane. One example of this is the diminishing rebates by the California Solar Initiative. The rebate program was front loaded so early adopters received higher incentives. Another example is the Federal Energy Tax Credits, which have been reduced for 2011.
If you are considering a new solar system be sure to do your homework, but don’t put it off too long. The rebates and incentives won’t be around forever.
