IREC Report Shows Solar Markets Booming

September 5, 2008
Solar markets are booming in the United States according to a new report from the Interstate Renewable Energy Council. U.S. Solar Market Trends for 2007 is a comprehensive report on U.S. solar installations by technology, state and market sector. Larry Sherwood wrote the report and the U.S. Department of Energy through the Solar America Initiative (SAI) provided the funding.

“The solar growth rate accelerated after the 2006 increase in the federal investment tax credits,” said Larry Sherwood.  “By 2007, the capacity of PV installed each year more than doubled the annual amount installed in 2005.”   

The report includes both grid-connected and off-grid PV, solar hot water and solar pool heating and solar thermal electric installations. The numbers are impressive.   

Over 80,000 installations were completed in 2007 and the capacity of photovoltaic (PV) installations completed in 2007 grew by 48% compared with 2006.  The two largest U.S. PV installations, one in Nevada and one in Colorado, were completed in 2007.  The PV market is expanding to more states, though California remains the dominant market.

Solar hot water installations (low-temperature thermal) have boomed since the 2006 increase in the federal investment tax credit. In the continental 48 states, installations have quadrupled since 2005.  Hawaii continues to be the largest market for solar hot water.

For concentrating solar electricity (high-temperature thermal), the 64 MW Nevada Solar One solar thermal electric plant went on-line June 2007.  Other than a smaller 1 MW plant built in Arizona in 2006, this was the first new U.S. solar thermal electric plant constructed in over 15 years.

Sherwood says that continued growth in these markets is tied to the continuation of the federal investment tax credits.  “Growth for both PV and solar hot water markets in 2009 depends on the timely extension of these tax credits.  Consumers will wait to buy until they know tax credits are available,” he said. 

To read the report in its entirety, visit the IREC website - http://www.irecusa.org/index.php?id=68&tx_ttnews[tt_news]=1187&tx_ttnews[backPid]=1&cHash=268a2ff6c0