The U.S. solar market has had a record-setting year so far with more than 1 gigawatt of grid-connected photovoltaics installed in the first three quarters of 2011, thanks largely to a precipitous drop in prices and several utility-scale solar project completions, according to a report released today by Solar Energy Industries Association and GTM Research. In the third quarter alone, 492 MW of PV were installed, representing 140 percent growth from the same period last year.
Next year, on the other hand, might not be so rosy. The potential expiration of 1603 Treasury Program, a federal cash grant program that has spurred installations, as well as possible import duties on Chinese cells and modules could have a wrenching, momentum-crushing effect on the U.S. solar market.
If module prices continue to fall, residential solar installation may increase. However, it also will likely mean further consolidation within the solar manufacturing industry as panel makers struggle to remain competitive.
The good news
The data within the report does provide a pretty positive present day picture of the U.S. solar market. Here are a few of the highlights:
Trends in U.S. solar
A few items stood out in the SEIA/GTM Research report, including the decline of commercial installations caused by a downturn in big solar states including California, New Jersey, Pennsylvania and Arizona. These states made up well over 50 percent of installations in the first half of the year. Meaning, for the solar installations to continue its upward trajectory, other emerging markets will have to pick up the pace. States with the potential to keep the solar installation momentum alive, includes Massachusetts, Colorado, Ohio, Tennessee and Hawaii.
Photo: BrightSource Energy
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This post was originally published on Smartplanet.com