The new report by Greentech Media Research (GTM) “The United States PV market through 2013″ offers a comprehensive analysis of the power in the US market for photovoltaic (PV) in the next years.
Between 2000 and 2008, annual installed grid-connected PV capacity in the U.S. grew from 4 Megawatts (MW) to 290 MW at an average rate of 71% per year. This rapid growth made the U.S. the third-largest global demand center behind Germany and Spain. Only the U.S., however, has the potential to engender a truly sustainable, long-term market. With high isolation, the greatest electricity demand in the world, and ample available land for PV development, the U.S. presents an attractive long-term growth opportunity for developers, installers, financiers, and other PV service providers.
The residential sector and local/state government projects drive demand growth, thanks to stimulus funding and the recently uncapped residential Investment Tax Credit. California retains its dominant market share, accounting for 205, or 50 percent of national demand. Secondary markets in Arizona, Colorado and New Jersey support demand growth.
U.S. PV market becomes a global demand leader by 2012
Over the next four years, the U.S. will experience the most rapid demand growth of any major PV market. Base case U.S. PV demand is anticipated to grow to 1,515 MW in 2012, with annual growth from 2008 to 2012 averaging 48 %. During this period, the U.S. will surpass Spain to become the second leading PV market in the world behind Germany.
New financing models drive residential sector growth
Financing models that obviate the need for direct ownership will drive residential market growth. GTM Research analysts predict that up-front cost and simple payback are the two factors driving demand for residential projects. The expansion of residential solar financing through leases or power purchases agreements with little up-front cost will enable the residential sector to grow to 363 MW by 2012.
Blog by Martina Zepter