Wood Mackenzie: U.S. solar development pipeline hits record 37.9GW

first_imgWood Mackenzie: U.S. solar development pipeline hits record 37.9GW FacebookTwitterLinkedInEmailPrint分享S&P Global Market Intelligence ($):The pipeline of solar projects in the U.S. has reached an all-time high of 37.9 GW, according to a new report from Wood Mackenzie and the Solar Energy Industries Association. That number presages a boom in solar energy projects driven by friendly state and federal policies, low prices for solar power, and an increasing number of corporate off-takers looking to power their operations with renewable energy.The latest finding follows a record-high 15 GW of solar power capacity additions in 2018, the study found. And although the U.S. solar market saw a 7% year-over-year decline in the second quarter of 2019, with 2.1 GW installed, 11.2 GW of new projects were announced in the first half of this year, according to Wood Mackenzie’s analysis.The federal investment tax credit will step down from 30% for solar projects this year to 26% for projects that begin construction in 2020, 22% in 2021 and 10% in 2022, and thereafter for commercial and utility-scale projects. The tax credit for residential solar systems will expire in 2022. Installed solar capacity will more than double over the next five years as annual installations reach 17.6 GW in 2021, according to the report.As government subsidies are reduced, corporate investment will become increasingly important for the renewable energy industry. Corporate solar procurement represents 17% of new utility-scale solar capacity announced in 2019, according to the report. “As more companies commit to 100% renewable power, corporate offsite procurement is expected to drive more than 20% of new utility-scale capacity additions from 2019 through 2024,” Colin Smith, senior solar analyst with Wood Mackenzie, said in the news release.Prices for utility-scale solar power hit their lowest point ever in 2019, the report found, with recent power purchase agreements priced at $18/MWh to $35/MWh. Despite record-low prices, government support and rapid growth in deployments, however, solar power still represents only 2.5% of U.S. generation capacity, according to the SEIA.More ($): 37.9 GW of solar in the US pipeline, an all-time record, report findslast_img

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