US Solar Weathers Tariff Squall

In its just released “US Solar Market Insights” report, SEIA and GTM show that solar grew 13% year over year, but registered a 37% quarter over quarter decrease (last quarter was the largest ever), and that 55% of all new generating capacity added last quarter came from solar, the second quarter solar registered the largest share of new plants. Commercial grew 49% year over year, representing 1/5 of the 2.5 MW added.


In the face of 30% tariffs imposed by the Trump Administration, GTM forecasts flat growth for the next two years, rather than the previously anticipated decline, followed by healthy rebound in residential PV in 2021; while the commercial, non residential segments are expected to hold through 2020.

California’s new mandate to install solar on all new homes starting in 2020 will add 800 Megawatt to the demand. And while California remains the undisputed national leader in solar capacity, the report shows Florida jumping to second position this quarter, despite a difficult political environment for solar, followed by NY and Arkansas.

Source: https://www.woodmac.com/our-expertise/focus/Power–Renewables/us-smi-q2-2018/

This bodes well for the US industry, customers remain committed to sustainable energy, whether corporate or residential.

Given the anticipated temporary glut in China, and the volume increases to satisfy India’s new goals, prices of modules will continue to go down at the same annual 5-6% rate effectively offsetting the negative impact of tariffs. And given the mid-market’s waking interest in storage plus solar, the new forecast of 10.8GW for the year will be met before December.

More corporations and institutions are adopting ambitious renewables target for their energy mix, more consumers are switching to EV’s; the transition continues.

 

By |2018-06-13T11:17:56+00:00June 13th, 2018|News/Stories|0 Comments