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Released May 22, 2017 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--The North American utility-scale solar power market sizzled last year, driven in part by sizable cost reductions in solar panels, and there's no let-up in sight as developers have a bulging pipeline of projects scheduled to kick off construction in 2017 and 2018, according to data from Industrial Info and GTM Research (Boston, Massachusetts).
Last year, developers completed work on 87 utility-scale solar power projects across North America valued at about $14.44 billion, according to Industrial Info's Industrial Project Platform. The vast majority of those completions--74 projects with total investment value (TIV) of about $13.2 billion--took place in the U.S. Canada was home to five project completions worth $745 million, while eight projects valued at $514 million came online last year in Mexico.
Click on the image at right to see utility-scale solar-power completions across North American in 2016.
The U.S. Energy Information Administration (EIA) (Washington, D.C.), the analytic and statistical branch of the U.S. Department of Energy (DoE) (Washington, D.C.), said more than 7,600 megawatts (MW) of utility-scale solar generation came online in the U.S. last year. That number includes both photovoltaic (PV) and concentrating solar power (CSP).
The dramatic growth of solar power has been driven partly by rapidly declining costs for solar panels, which fell about 20% last year, estimated GTM Research, a market research organization, in its report, U.S. Solar Market Insight 2016 Year in Review. It predicts utility-scale project completions will reach about 8,712 MW this year.
Click on the image at right to see historical and projected installations for utility-scale, residential and commercial solar power.
"It would be hard to overstate how impressive 2016 was for the solar industry," said Abigail Ross Hopper, president and chief executive of the Solar Energy Industries Association (SEIA) (Washington, D.C.), which partners with GTM Research to produce annual and quarterly recaps of the U.S. solar market. "Prices dropped to all-time lows, installations expanded in states across the country, and job numbers soared. The bottom line is that more people are benefiting from solar now than at any point in the past, and while the market is changing, the broader trend over the next five years is going in one direction--and that's up."
Industrial Info's North American Project Platform is tracking 199 active U.S. utility-scale projects worth $22.38 billion that are scheduled to begin construction between January 2017 and December 2018. Over that same timeframe, the broader North American market is expected to see construction begin on about 308 projects valued at $35.11 billion.
Once again, the U.S. expects to capture the lion's share of new utility-scale solar projects, but project activity in Mexico is expected to surge during 2017-2018. Project activity in Canada remains far behind those two nations.
Click on the image at right to see a chart of utility-scale solar projects kicking off construction in 2017 and 2018 across North America.
The pace of solar project activity has accelerated this year. Three months ago, Industrial Info was tracking 259 active utility-scale solar projects valued at $34.51 billion that were scheduled to kick off this year or next across North America. Since that time, another 49 projects valued at about $600 million have been added to the active project list, bringing it to 308 projects valued at $35.11 billion. For more on this, see February 1, 2017, article - North American Solar Power Development Expected to Surge in 2017, 2018.
Industrial Info does not expect all of those projects to begin construction according to their current schedules. Difficulties in signing power purchase agreements (PPAs) or arranging financing could cause some projects to be delayed or cancelled. Also, as utilities near their renewable resource requirements set by state utility commissions, their appetite for additional solar generation may wane.
Federal investment tax credits (ITCs) worth up to 30% of the value of a solar project are available through 2022, though they decline in the out years. The ITCs help make solar power more competitive with other forms of electric generation. But the continuing declines in solar panel costs, and the fierce fight for market share among panel manufacturers and developers, have pushed PPA prices to historic lows, benefitting utilities and their customers. Some utilities are starting to see solar as a potential hedge against rising gas prices. One developer told Industrial Info that solar generation plus electricity storage can produce electricity at less than the cost of a high-efficiency gas turbine. For more on that, see May 15, 2017, article - Energy Storage: Dynamic Business That Could Transform the Power Industry.
Ten U.S. and Mexican states have scheduled $1 billion or more of solar power construction kickoffs for 2017-2018. The leading states are:
Click on the image at right for a chart showing the hottest state markets for utility-scale solar power development in North America.
One issue that could upend the sizzling solar market is the precarious financial condition of solar companies. Intense fights for market share have eroded profit margins and pushed some firms into bankruptcy. Firms still solvent have seen their stock price wither over the last year, according to a report in E&E News.
"The U.S. solar market is going gangbusters, but American solar firms are struggling to keep their heads above water," E&E News recently reported. "A record-setting year, which saw U.S. solar installations soar to new heights, has been followed by a series of bankruptcies and slumping stock prices."
"Solar power is hot and getting hotter," remarked Britt Burt, Industrial Info's vice president of research for the Global Power Industry. "We don't expect all of these active projects to begin construction according to their current schedules, but the pipeline of business across North America is truly impressive. And the dramatic growth we are tracking does not include the rooftop solar business, which also is blazing hot. When coupled with electric storage technologies, solar power developers at the utility-scale and residential-scale levels may have a good answer to the rhetorical question, 'What happens when the sun doesn't shine?' "
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.
Last year, developers completed work on 87 utility-scale solar power projects across North America valued at about $14.44 billion, according to Industrial Info's Industrial Project Platform. The vast majority of those completions--74 projects with total investment value (TIV) of about $13.2 billion--took place in the U.S. Canada was home to five project completions worth $745 million, while eight projects valued at $514 million came online last year in Mexico.
The U.S. Energy Information Administration (EIA) (Washington, D.C.), the analytic and statistical branch of the U.S. Department of Energy (DoE) (Washington, D.C.), said more than 7,600 megawatts (MW) of utility-scale solar generation came online in the U.S. last year. That number includes both photovoltaic (PV) and concentrating solar power (CSP).
The dramatic growth of solar power has been driven partly by rapidly declining costs for solar panels, which fell about 20% last year, estimated GTM Research, a market research organization, in its report, U.S. Solar Market Insight 2016 Year in Review. It predicts utility-scale project completions will reach about 8,712 MW this year.
"It would be hard to overstate how impressive 2016 was for the solar industry," said Abigail Ross Hopper, president and chief executive of the Solar Energy Industries Association (SEIA) (Washington, D.C.), which partners with GTM Research to produce annual and quarterly recaps of the U.S. solar market. "Prices dropped to all-time lows, installations expanded in states across the country, and job numbers soared. The bottom line is that more people are benefiting from solar now than at any point in the past, and while the market is changing, the broader trend over the next five years is going in one direction--and that's up."
Industrial Info's North American Project Platform is tracking 199 active U.S. utility-scale projects worth $22.38 billion that are scheduled to begin construction between January 2017 and December 2018. Over that same timeframe, the broader North American market is expected to see construction begin on about 308 projects valued at $35.11 billion.
Once again, the U.S. expects to capture the lion's share of new utility-scale solar projects, but project activity in Mexico is expected to surge during 2017-2018. Project activity in Canada remains far behind those two nations.
The pace of solar project activity has accelerated this year. Three months ago, Industrial Info was tracking 259 active utility-scale solar projects valued at $34.51 billion that were scheduled to kick off this year or next across North America. Since that time, another 49 projects valued at about $600 million have been added to the active project list, bringing it to 308 projects valued at $35.11 billion. For more on this, see February 1, 2017, article - North American Solar Power Development Expected to Surge in 2017, 2018.
Industrial Info does not expect all of those projects to begin construction according to their current schedules. Difficulties in signing power purchase agreements (PPAs) or arranging financing could cause some projects to be delayed or cancelled. Also, as utilities near their renewable resource requirements set by state utility commissions, their appetite for additional solar generation may wane.
Federal investment tax credits (ITCs) worth up to 30% of the value of a solar project are available through 2022, though they decline in the out years. The ITCs help make solar power more competitive with other forms of electric generation. But the continuing declines in solar panel costs, and the fierce fight for market share among panel manufacturers and developers, have pushed PPA prices to historic lows, benefitting utilities and their customers. Some utilities are starting to see solar as a potential hedge against rising gas prices. One developer told Industrial Info that solar generation plus electricity storage can produce electricity at less than the cost of a high-efficiency gas turbine. For more on that, see May 15, 2017, article - Energy Storage: Dynamic Business That Could Transform the Power Industry.
Ten U.S. and Mexican states have scheduled $1 billion or more of solar power construction kickoffs for 2017-2018. The leading states are:
- California has 32 projects valued at about $7.6 billion scheduled to begin turning dirt
- North Carolina has scheduled construction to begin on 33 projects valued at $3.1 billion
- Chihuahua, Mexico, plans to begin constructing 16 projects valued at $2.2 billion
- Coahuila, Mexico, is scheduled to be the home for 8 projects worth $2.1 billion
- Nevada plans to host seven projects with TIV of $1.7 billion
One issue that could upend the sizzling solar market is the precarious financial condition of solar companies. Intense fights for market share have eroded profit margins and pushed some firms into bankruptcy. Firms still solvent have seen their stock price wither over the last year, according to a report in E&E News.
"The U.S. solar market is going gangbusters, but American solar firms are struggling to keep their heads above water," E&E News recently reported. "A record-setting year, which saw U.S. solar installations soar to new heights, has been followed by a series of bankruptcies and slumping stock prices."
"Solar power is hot and getting hotter," remarked Britt Burt, Industrial Info's vice president of research for the Global Power Industry. "We don't expect all of these active projects to begin construction according to their current schedules, but the pipeline of business across North America is truly impressive. And the dramatic growth we are tracking does not include the rooftop solar business, which also is blazing hot. When coupled with electric storage technologies, solar power developers at the utility-scale and residential-scale levels may have a good answer to the rhetorical question, 'What happens when the sun doesn't shine?' "
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.
