U.S. solar market spikes in second quarter

Sep 10 - San Jose Mercury News

The amount of photovoltaic solar panels installed in the United States reached 742 megawatts in the second quarter of 2012, according to a report released Monday by GTM Research and the Solar Energy Industries Association, up from 512 megawatts in the first quarter.

Analysts with GTM research expect that by year-end, 3,200 megawatts will be installed nationwide, up 71 percent over 2011.

Photovoltaic, or PV, solar panels convert sunlight directly into electricity. Installation figures include those on homes and businesses as well as much larger, utility-scale power plants.

Much of the growth in the second quarter was fueled by the completion of more than 20 large solar power plant projects in key states like Arizona and California. Utility installations accounted for 477.3 of the 742 megawatts, while the commercial sector was 196.3 megawatts and residential was 98.2 megawatts. California remains the nation's leading market, with 217 megawatts installed in the second quarter, followed by Arizona with 173 megawatts.

"We had a lot of utilty-scale capacity come online. It's going to be the big story of the year," said Shayle Kann, vice president of research at GTM research. "The price of solar continues to come down, and utilities are turning more and more to solar."

The report also found that in the residential market, third-party ownership models accounted for 70 percent of residential installations. Bay Area companies like

SolarCity, SunRun and Sungevity have led the way, offering consumers a way to go solar with no-money-down via leases or power purchase agreements. San Jose-based SunPower (SPWRA), which makes its own solar panels, has also gotten into the leasing game.

"In markets where third-party ownership is an option, it quickly becomes the preferred option," said Kann.

One megawatt is enough to power about 750 to 1,000 homes. But because the sun doesn't shine all the time, solar industry experts typically say that 1 megawatt of solar power capacity is sufficient to power about 200 households.

The U.S. solar market varies widely from state to state and are heavily influenced by factors like the cost of electricity, the amount of sunlight and incentives for solar from state regulators.

California utilities are under pressure to meet the state's aggressive Renewable Portfolio Standard, which calls for 33 percent of electricity to come from renewable sources by 2020. The utilities are well on their way to meeting that goal, and San Francisco-based PG&E has said it expects solar to account for 40 percent of its renewable mix by 2020.

The report was released as Solar Power International, one of the industry's key trade shows, got underway in Orlando, Florida. President Bill Clinton is scheduled to give the conference's keynote address on Wednesday.

Contact Dana Hull at 408-920-2706. Follow her at Twitter.com/danahull.

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