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Released February 01, 2017 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Solar power developers plan to begin construction of an increasing number of projects across North America in 2017 and 2018. According to Industrial Info's North American Project Platform, 154 solar projects across North America are scheduled to begin construction this year, with total investment value (TIV) of about $19.38 billion. Developers also are scheduled to begin construction on an additional 105 projects valued at $15.13 billion in 2018.
Industrial Info does not expect all of these projects to begin construction according to schedule. If history is any guide, about 33% will break ground according to schedule, while many others will be delayed. Some projects will be cancelled, either because of an inability to secure financing, permits or an inability to find customers for a project's power.
Solar power development has surged over the last few years, aided by supportive state and federal policies; declining costs; and rising consumer and corporate interest in generating electricity from the sun. In contrast to the 154 projects scheduled to begin construction this year, developers were scheduled to break ground only on 72 projects across North America last year valued at $7.27 billion.
In addition to utility purchasers of solar power, corporations are increasingly siting renewable energy to power their facilities, in response to customer expectations that companies operate sustainably. For more on that, see December 29, 2016, article - Dominion Helps Amazon Green its Electricity Supply, and January 21, 2016, article - Corporate America Boosts Commitment to Renewable Energy.
Most North American solar projects scheduled to begin construction over the next two years are expected to be built in the U.S. This year, developers plan to begin construction on 97 projects in the U.S. worth $11.3 billion. Next year, developers expect to break ground on 71 domestic solar projects worth $11.9 billion.
In 2017, 59% of all North American solar projects, by value, are scheduled to be built in the U.S. Next year, that percentage is expected to rise to 79%. In both years, Mexico is the second most-attractive country in North America for solar project activity while Canada is third.
Click on the images at right to see pie charts detailing solar project activity, by country, in 2017 and 2018.
But not all solar projects scheduled to begin construction in a given year actually keep their schedules. Britt Burt, Industrial Info's vice president of research for the Global Power Industry, told attendees at an outlook event in Houston on January 17, 2017, that he expects construction to actually begin on about 5,765 MW of solar power projects in the U.S. That's ahead of last year's total of 2,692 MW of project starts, but well short of all the solar projects that developers have scheduled to begin construction this year. For more on renewable energy's role in the changing U.S. Power Industry, see January 20, 2017, article - Industrial Market Outlook in Review: Transition of U.S. Power Industry in Full Swing.
Of the projects scheduled to begin turning dirt in 2017, the states with the most solar project activity are:
Click on the image at right to see a graphic of the North American states with the largest dollar-value of solar project activity scheduled to kick off construction in 2017.
Six of the 10 North American states with the highest dollar value of solar projects scheduled to begin construction in 2017 are in Mexico, likely a function of the Mexican government's commitment to liberalizing its energy markets. For more on that, see August 4, 2015, article - Mexico's Energy Liberalization Has Rocky Start, but Expert Predicts Fast Recovery.
Turning to 2018, developers have scheduled construction to start on a total of 105 projects across North America valued at about $15.13 billion. The five states with the most solar project activity, by dollar value, are:
Click on the image at right to see a graphic of the North American states with the largest dollar-value of solar project activity scheduled to kick off construction in 2018.
U.S. projects that begin construction before yearend 2019 are eligible for investment tax credit (ITC) worth 30% of the project. Projects breaking ground in 2020 would only be eligible for tax credits worth 26% of the project. Tax credits are only available to tax-paying entities. For more on the extension of the ITC, see December 21, 2015, article - Renewable, Alternative Energy Industries Cheer Extensions of Tax Credits. It is not clear whether President Donald Trump will seek to modify the tax credits extended by Congress in late 2015.
Solar power project activity could get an added boost this year as developers may revive projects they had cancelled or placed on hold. A total of 116 solar projects valued at about $26 billion were scheduled to kick off construction in 2015 and 2016, but they were cancelled or placed on hold. Some of these projects may be reactivated by developers. For more on that, see January 15, 2016, article - Extension of PTC and ITC Could Bring Some Renewable Energy Projects Back from the Dead.
"We've seen an uptick in solar project activity, mostly utility-scale but also some community solar, over the last year," Burt said. "Some of the projects scheduled to kick off construction this year have been delayed several times, and we see several being pushed back to 2018 as developers continue to seek permits, financing or customers for the electricity their projects will generate. Still, this is a fast-growing segment of the electric power market, though its overall contribution to the North American electric power mix remains very small."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Industrial Info does not expect all of these projects to begin construction according to schedule. If history is any guide, about 33% will break ground according to schedule, while many others will be delayed. Some projects will be cancelled, either because of an inability to secure financing, permits or an inability to find customers for a project's power.
Solar power development has surged over the last few years, aided by supportive state and federal policies; declining costs; and rising consumer and corporate interest in generating electricity from the sun. In contrast to the 154 projects scheduled to begin construction this year, developers were scheduled to break ground only on 72 projects across North America last year valued at $7.27 billion.
In addition to utility purchasers of solar power, corporations are increasingly siting renewable energy to power their facilities, in response to customer expectations that companies operate sustainably. For more on that, see December 29, 2016, article - Dominion Helps Amazon Green its Electricity Supply, and January 21, 2016, article - Corporate America Boosts Commitment to Renewable Energy.
Most North American solar projects scheduled to begin construction over the next two years are expected to be built in the U.S. This year, developers plan to begin construction on 97 projects in the U.S. worth $11.3 billion. Next year, developers expect to break ground on 71 domestic solar projects worth $11.9 billion.
In 2017, 59% of all North American solar projects, by value, are scheduled to be built in the U.S. Next year, that percentage is expected to rise to 79%. In both years, Mexico is the second most-attractive country in North America for solar project activity while Canada is third.
Click on the images at right to see pie charts detailing solar project activity, by country, in 2017 and 2018.But not all solar projects scheduled to begin construction in a given year actually keep their schedules. Britt Burt, Industrial Info's vice president of research for the Global Power Industry, told attendees at an outlook event in Houston on January 17, 2017, that he expects construction to actually begin on about 5,765 MW of solar power projects in the U.S. That's ahead of last year's total of 2,692 MW of project starts, but well short of all the solar projects that developers have scheduled to begin construction this year. For more on renewable energy's role in the changing U.S. Power Industry, see January 20, 2017, article - Industrial Market Outlook in Review: Transition of U.S. Power Industry in Full Swing.
Of the projects scheduled to begin turning dirt in 2017, the states with the most solar project activity are:
- California, with 19 projects valued at approximately $5.8 billion
- Coahuila, Mexico, with five projects worth about $1.9 billion
- North Carolina, with 13 projects valued at approximately $1.2 billion
- Yucatan, Mexico, with seven projects worth roughly $1 billion
- Guanajuato, Mexico, with four projects valued at about $1 billion
Click on the image at right to see a graphic of the North American states with the largest dollar-value of solar project activity scheduled to kick off construction in 2017.Six of the 10 North American states with the highest dollar value of solar projects scheduled to begin construction in 2017 are in Mexico, likely a function of the Mexican government's commitment to liberalizing its energy markets. For more on that, see August 4, 2015, article - Mexico's Energy Liberalization Has Rocky Start, but Expert Predicts Fast Recovery.
Turning to 2018, developers have scheduled construction to start on a total of 105 projects across North America valued at about $15.13 billion. The five states with the most solar project activity, by dollar value, are:
- California, with 18 projects worth about $3.4 billion
- Arizona, with four projects valued at approximately $2.6 billion
- Nevada, with five projects worth roughly $1.3 billion
- Texas, with seven projects valued at about $1.23 billion
- North Carolina, with nine projects worth roughly $1.2 billion
Click on the image at right to see a graphic of the North American states with the largest dollar-value of solar project activity scheduled to kick off construction in 2018.U.S. projects that begin construction before yearend 2019 are eligible for investment tax credit (ITC) worth 30% of the project. Projects breaking ground in 2020 would only be eligible for tax credits worth 26% of the project. Tax credits are only available to tax-paying entities. For more on the extension of the ITC, see December 21, 2015, article - Renewable, Alternative Energy Industries Cheer Extensions of Tax Credits. It is not clear whether President Donald Trump will seek to modify the tax credits extended by Congress in late 2015.
Solar power project activity could get an added boost this year as developers may revive projects they had cancelled or placed on hold. A total of 116 solar projects valued at about $26 billion were scheduled to kick off construction in 2015 and 2016, but they were cancelled or placed on hold. Some of these projects may be reactivated by developers. For more on that, see January 15, 2016, article - Extension of PTC and ITC Could Bring Some Renewable Energy Projects Back from the Dead.
"We've seen an uptick in solar project activity, mostly utility-scale but also some community solar, over the last year," Burt said. "Some of the projects scheduled to kick off construction this year have been delayed several times, and we see several being pushed back to 2018 as developers continue to seek permits, financing or customers for the electricity their projects will generate. Still, this is a fast-growing segment of the electric power market, though its overall contribution to the North American electric power mix remains very small."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
