The United States currently has more than 100 gigawatts of solar capacity, according to a new report, but rising costs could pose challenges for this sector.
By Amol Rajput
The numbers are from the latest US Solar Market Insight Report released by the Solar Energy Industries Association and Wood Mackenzie on Tuesday.
The US PV industry was found to have installed a PV capacity of just over 5 GW in the first three months of 2021. This is the first quarter record, 46% higher than the same period in 2020.
At the state level, Texas topped the list with capacities of over 1.52 GW, followed by California and Florida with 563 and 525 MW.
All in all, the report states that solar accounted for “58% of all new generation capacity added” in the United States in the first quarter. It says the wind was the cause of “most of the rest.”
The US PV industry currently has a capacity of over 100GW, but other markets have already reached that milestone. Towards the end of 2020, SolarPower Europe said the European Union has a capacity of over 137GW.
The above numbers are related to DC or DC ratings, not AC. Capacity is the maximum amount that equipment can produce, not necessarily what it is currently producing, but photovoltaics are a way of converting light from the sun directly into electricity.
Future tasks
While the number of installations in the United States looks promising, the sector is facing some potential headwinds in the future.
“Over the last few quarters, the supply of critical components of solar equipment, such as polysilicon, steel, aluminum, semiconductor chips, copper and other metals, has been increasingly constrained,” said the report’s executive summary.
He added that rising demand for solar “in combination with the pandemic macroeconomic reality”, such as the availability of microchips and soaring shipping costs, has led to higher commodity prices and delayed deliveries.
“There is a lag between commodity prices and subsequent PV system prices,” said Michelle Davis, chief analyst at Wood Mackenzie Power and Renewables and lead author of the report.
“But there is no doubt that this is affecting the PV industry,” she added. “The installer is in control of the current equipment shortage and needs to decide whether to renegotiate the contract.”
While the increase in PV equipment is likely to be welcome news for renewable energy advocates, the transition from fossil fuels will be an important challenge that requires major changes.
In the United States, the US Energy Information Administration’s preliminary figures show that in 2020, the utility-scale power generation shares of natural gas and coal were 40.3% and 19.3%, respectively.
US solar capacity is over 100 gigawatts, but the challenge remains unsolved
Originally published at Eminetra