Kingdom of Saudi Arabia Solar Market Report
Electricity generated from solar based technologies is on a continuous rise in the United States (US). A global decline in cost of solar and supportive government policies have been highlighted as key factors for the rise of solar power in the country. The US Solar market is currently registering a compound annual growth rate of 16.48% with a low market concertation. By the end of 2024, the US’ total solar capacity is expected to reach 164.2GW. By 2029, this is expected to reach 352GW.
US Solar Market Analysis
As mentioned, the global decrease in Solar PV cost has contributed greatly to the increase in Solar power across the US. In the last 10years, the price of Solar PV has dropped by 90%. According to Mordor Intelligence, a combination of techno-economic and geopolitical factors will mean the price of Solar PV will continue to decline gradually in the US.
Since 2010, the US National Renewable Lab has highlighted that the cost of solar for particular industries has shown a continuous decline. Residential Solar has shown a 64% decrease, Commercial Solar registered a 69% decrease and Utility Scale Solar PV with a 82% decrease. Rooftop solar is highlighted as the key technology used by residential and commercial customers to save cost and time.
Supportive government policies are also driving the US Solar market. The Solar Energy Industries Association (SEIA) have explained a combination of domestically produced and imported solar technologies will benefit the US Energy mix. The Biden Administration has been encouraged to prioritise domestic based produce to ensure Solar’s rise in the country despite competition of imports from other regions. The Investment Tax Credit is a federal policy that has been driven by the price of Solar to keep costs on the decline and increase the technologies’ demand.
US Solar Market Trends
Solar continues to become more accessible and cost effective to consumers in the US. The annual growth rate of Solar sat at 8.3% in 2022 with solar installations increasing by 30x with total installed capacity reaching 145.598GwH.
California currently leads installed capacity with the technology becoming more economically competitive with conventional energy sources. The state currently produces 30% of the US’ total solar generation at 7880KwH and, according to the SEIA, are set to add 22,630MW in the next 5 years. Texas is currently the second most successful state regarding solar generation, registering 3086KwH.
Despite experiencing supply constraints in Solar PV, due to issues with imports, Utility Scale Solar installations increased by 66% in the first quarter of 2022 (SEIA). In 2024, Solar PV accounted for 54% of new electricity generating capacity in the US. This is to increase drastically by 2029.
What is happening in the US?
In March 2023, Duke Energy Sustainability Solutions announced they are now operating its largest solar power plant. The Pisgah Ridge Solar Facility in Navarro County, Texas currently registers a solar capacity of 250MW.
In April 2023, Atlas Renewable Energy and Albras announced they have signed a Power Purchase Agreement extending 21 years. Atlas are set to supply Albras with Solar energy via their 902MW solar farm. Abras’ Minas Ceras factory will be operational in 2025 and will be powered by the solar facility.
In the same month, Masdar announced they have increased their share in the US solar market by acquiring a 50% stake in a solar and battery project led by EDF Renewables North America. The Big Beau project is a 128MW solar farm with a 40MW Battery Energy Storage System. This collaboration is 1 project of 8 that Masdar and EDF’s work together on, the total capacity of all projects equal 1.6GW.
Key Players in the US Solar Market
- 8Minute
- Martenson
- First Solar
- NextEra Energy
- Salv Energy
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