Cambridge, Mass., December 8, 2009 — The U.S. is on pace to dominate the global solar photovoltaic market, according to a recent report by GTM Research.
The report, titled “The United States PV Market Through 2013: Project Economics, Policy, Demand and Strategy,” predicts the U.S. will challenge Germany as the industry’s largest solar energy market over the next four years.
GTM Research estimates that demand for solar photovoltaic installations will grow by roughly 50 percent annually to between 1.5 GW and 2 GW in 2012.
This growth could support at least 50,000 green jobs and over $6.1 billion in annual investment, and it will allow 1.5 million homes to enjoy csolar energy. The graphic provides demand projections for the U.S. through 2012.
Despite the recession, the report argues that 2009 is a record year for the U.S. PV market. Installed projects will reach 440 MW in 2009, up from 320 MW in 2008. By 2011, demand will more than double to reach 1,212 MW.
Demand is increasingly supported by the residential and utility-scale sectors, which have taken advantage of new incentives for renewable energy in the Recovery Act of 2008. Funding from the 2009 Stimulus Package (ARRA) will also support an expanded market for public sector projects.
California remains the country’s dominant state market, but second-tier states will soon emerge to diversify the U.S. market. By 2012, combined base-case demand from Arizona, New Jersey, New Mexico, New York, Nevada and Massachusetts will reach 376 MW.
Utility-scale installations will be the fastest growing market segment, stealing market share from the commercial sector and reaching 466 MW in the 2012 base-case scenario.
This is partly a result of renewable portfolio standard (RPS) requirements and a wave of new solar-specific RFPs in states with solar carve-outs. It is also a result of heightened interest in utility ownership of PV, for which there are numerous economic and operational benefits for utilities.