California Tops in Construction of Solar PV and CSP Projects of More than 1 Megawatt Each

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Of the 4,620 megawatts (MW) of solar power plants under construction in the U.S., 3,480 or more than 75% are in California. Arizona took second place with 675 MW, and Nevada came in third with 156 MW under construction.

The Solar Energy Industries Association (SEIA) stated in a report (which listed all solar projects) that of all the projects larger than 1 MW that are under construction in the U.S., 1,260 MW are concentrating solar power (CSP) projects and 3,360 MW are photovoltaic (PV) projects.

The SEIA found an additional 24,800 MW of utility-scale solar projects under development and 2,080 MW of operational utility-scale CSP and PV projects.

CSP projects make up 27% of the utility-scale projects. A smaller proportion of CSP projects (4,770 MW, or 19% of the total) are under development.

The list does not count residential, commercial or other PV or CSP plants under 1 MW. The report also noted that operational residential, commercial, non-profit and government PV and CSP plants total 3,150 MW.

Looking at the residential end of the market, SEIA quoted Cape Fear Solar Systems LLC (Wilmington, North Carolina) as an example of a company that is experiencing growth in domestic solar panel installations. This growth has been spurred by a combination of federal and state tax credits, plummeting equipment prices and an environmentally savvy population. The company installed panels on 17 homes from 2008 to 2010. From 2010 to 2012, the number jumped to 51, representing a 200% increase. Solar Star Energy Corporation (Pineville, North Carolina) also saw its installations double in the city over the same period.

"It's partly because of the rising cost of electricity," said Gary LeBer, general manager of Solar Star. "People are becoming more aware of the potential to be energy-independent. Equipment prices have come down over the years. It's still a sizable investment, but as long as the tax credits are there to offset, the installations will pay for themselves in anywhere from seven to eight years."

Through the end of 2016, residential solar installations are eligible for a 30% reimbursement from the federal government with no cap. In North Carolina, residents also are eligible for a 35% reimbursement on system costs, which is up to $10,500. Additionally, among other incentives, Progress Energy ratepayers can enroll in the utility's SunSense program, which offers an upfront rebate of $1,000 per kilowatt of the solar system's installed capacity.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, 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.