Where US Solar Stands Globally

Sunny skies ahead in the PV solar market

Photo Credit: kaleid

Where once the U.S. stood behind the scenes and let countries like Germany and Spain take the lead in the solar arena, we’ve now inched up, and per the new Pike Research report (U.S. Solar Energy Demand Dynamics), we should exceed Spain this year and take the reins from Germany by 2013.

Though hard-hit by the battered economy, a boost in federal incentives would most likely trigger a speedy rebound, and the U.S. would be in a position for global leadership in the solar PV market share by 2014.

Though financing is still difficult to secure due to increased credit requirements, banks like U.S. Bancorp and Wells Fargo have stepped up to the plate by establishing tax equity funds for solar projects. States and municipalities in areas like California, New Jersey, Vermont, Florida and New York have also bellied up by offering incentives like upfront rebates, property tax credits, renewable energy credits and European-style feed-in tariffs.

Photo Credit: mjmonty

This year, solar companies have been slowed by numerous cancellations and delays. New Jersey alone was stung with $450 million in idle projects. However, activity is starting to heat up again, as witnessed by areas such as California and New Jersey, who’ve seen upward growth in demand partially due to increased federal and state subsidies, and largely due to the fact that module prices have fallen by 50 percent and installation rates dropped by over 30 percent. This has made it more affordable for the consumer to achieve a solar lifestyle.

Per the Pike report, companies that will reap the benefits of the next boom include: First Solar, Suntech, SunPower, Akeena, Real Goods Solar, and Yingli. They’re just waiting for financing to pick up, which will create more demand.

Bottom line: the firm’s five-year outlook points to sunny skies ahead in the PV solar market.

A summary of the firms report can be found on their website at:

http://www.pikeresearch.com/research/us-solar-energy-demand-dynamics

Posted on August 6th in Solar News by Beth.