Pipeline of contracted solar projects reaches all-time high

The pipeline for new utility-scale solar energy projects in the United States has reached its highest level ever, according to the U.S. Solar Market Insight Report.

The report — published by Wood Mackenzie and the Solar Energy Industries Association (SEIA) — says the contracted pipeline for utility-scale projects has grown to a record 37.9 gigawatts (GW). Utility solar project announcements surged to 11.2 GW in the first half of 2019, with 6.2 GW contracted in the second quarter alone.

“It’s no surprise that the U.S. solar pipeline is surging as costs continue to fall and solar becomes the lowest cost option for utilities, corporations, and families,” Abigail Ross Hopper, president and CEO of SEIA, said. “However, as we push for solar to represent 20 percent of U.S. electricity generation by 2030, smart policies like an extension of the solar Investment Tax Credit will be critical to reach this goal.”

Several utilities have announced large solar procurements as have companies like Starbucks, Microsoft, and Anheuser-Busch. Off-site corporate solar procurement represents 17 percent of the new utility-scale solar capacity announced in 2019.

“As more companies commit to 100 percent renewable power, corporate offsite procurement is expected to drive more than 20 percent of new utility-scale capacity additions from 2019 through 2024,” Colin Smith, senior solar analyst with Wood Mackenzie, said. “Cities, states, and utilities are already following through on their renewable energy and zero-carbon commitments. We’re starting to see procurement occur and expect even more RPS-driven procurement in the near- to mid-term.”