The solar power industry installed a record 1,855MW of new photovoltaic systems in the United States last year, a 109pc increase from 2010.
It was the first year US solar power installations exceeded 1,000MW, according to the 14 March report by GTM Research and the Solar Energy Industries Association. The industry is on track to install another 2,800MW this year, with growth of about 30pc/yr continuing through 2016, the report said.
Installers also set a quarterly record of 755MW in the fourth quarter, the second consecutive quarter of record growth and a 115pc increase from the fourth quarter of 2010. Commercial solar project builders raced against a deadline to start construction by the end of the year to get cash grants from the US Department of Treasury's 1603 Program. The department has awarded more than $1.9bn in lieu of tax credits for solar electricity projects from the start of the program in September 2009 until 21 February 2012, the last date for which data is available.
Of the new installations, 800MW were commercial systems, 758MW were utility-scale and 114MW were in the residential sector. California, New Jersey and Arizona led the market with 542MW, 313MW and 273MW, respectively, of new installations. Pennsylvania was sixth with 88MW.
The report forecasts that California will lead the market for installations in all categories. New Jersey will drop to third place behind Arizona overall, although it will hold its spot as the second-largest installer for commercial systems, the report projects. Massachusetts is expected to take sixth place, while Pennsylvania is forecast to drop from sixth to the 10th position.
Cheaper components and improved efficiencies drove the weighted average cost of installed photovoltaic systems down by 7.5pc last quarter relative to the third quarter, from $4.41/watt to $4.08/watt. The year-over-year average dropped by 20pc.
An increase in large commercial and utility-scale projects contributed to the lower costs. Residential system prices were $6.18/watt last quarter, compared with $4.92/watt for commercial systems and $3.20/watt for utility-scale projects.
Aggressive bidding lowered prices in East Coast markets with solar renewable energy certificate (SREC) markets.
“With SREC prices continuing to fall, developers are constantly bidding lower to keep projects attractive to investors,” the report said. “For larger, well-established installers and integrators, buying significant quantities of modules on the spot market or via short-term supply agreements helped them leverage low prices during the (fourth-quarter) installation rush.”
Cumulative photovoltaic capacity in the United States has reached 3,954MW. New installations last year represented 7pc of the global market, up from 5pc in 2010.
Ten concentrating photovoltaic projects came on line last year, but no new concentrating solar thermal power plants were built. More than 1,000MW of concentrating solar power are under construction.