Solar installations increase 9 percent in third quarter
U.S. solar companies installed 3.8 gigawatts (GW) of new solar photovoltaic (PV) capacity in the third quarter, a 9 percent jump from the prior quarter, according to the U.S. Solar Market Insight Q4 2020 report issued by the Solar Energy Industries Association (SEIA) and Wood Mackenzie.
The report found that solar accounts for 43 percent of all new electric generating capacity additions through the third quarter, more than any other electricity source. It projects a record 19 GW of new solar capacity installations in 2020, a 43 percent increase over 2019.
“This report points to the incredible resilience of our companies and workers in the face of the pandemic and continued demand for clean, affordable electricity sources,” SEIA President and CEO Abigail Ross Hopper said. “It also speaks to our ability to support economic growth, even in our darkest moments. While solar will continue to grow, the next administration and Congress have an opportunity to help the solar industry reach its Solar+ Decade goals, creating hundreds of thousands of jobs and tackling the climate crisis.”
The utility-scale solar market was the primary growth driver with 2.7 GW of new capacity. It accounted for 70 percent of all solar capacity brought online in the quarter. Texas and Florida both installed more than 2 GW through the third quarter. The utility-scale project pipeline increased to a record 69.2 GW. The U.S. is now forecast to reach 100 GW of cumulative installed solar capacity by mid-2021.
Even the residential solar market — which was hardest hit by the pandemic — saw 14 percent growth in the quarter but was still below first-quarter levels.
“Logically, the states with the biggest installation declines in Q2 also had the biggest recoveries in Q3, such as New York and New Jersey where restrictions were substantial,” Michelle Davis, senior analyst at Wood Mackenzie, said. “Business model adaptations, such as virtual sales tactics and pricing promotions, continued to pay dividends through the summer and fall.”
