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Another Record-Breaking Year For U.S. Solar
The U.S. solar industry installed 7,286 MW of solar photovoltaics in 2015 - the largest total ever and 17% above 2014. Also, solar beat out natural gas capacity additions for the first time, with solar supplying 29.5% of all new electric generating capacity in the U.S. last year.
The Solar Energy Industries Association (SEIA) and GTM Research have announced these historic figures from the U.S. Solar Market Insight 2015 Year-in-Review report.
The report says that, led by California, North Carolina, Nevada, Massachusetts and New York, the U.S. solar market experienced a year-over-year growth rate of 17%. Geographically, the market continues to diversify, with 13 states installing more than 100 MW each in 2015. States that made major solar strides include Utah, which jumped in ranking from 23rd to 7th place, and Georgia, which moved from 16th to 8th in the nation.
According to the report, the residential solar market grew 66% year-over-year and, for the first time in history, eclipsed 2 GW. The residential solar segment now represents 29% of the entire U.S. solar market - its largest share since 2009.
For the fourth year in a row, the non-residential market broke the 1 GW mark, but it remained roughly flat year-over-year. The report says the utility-scale sector, the mainstay of the U.S. solar market, grew 6% year-over-year and represented more than half of all solar PV installed in 2015.
Cumulative U.S. solar PV installations have now topped 25 GW, up from just 2 GW in 2010.
“Without a doubt, 2015 was a monumental year for the U.S. solar industry, and perhaps what’s most amazing is that we’re only getting started,” says SEIA President and CEO Rhone Resch. “Over the next few years, we’re going to see solar continue to reach unprecedented heights as our nation makes a shift toward a carbon-free source of energy that also serves as an economic and job-creating engine.”
Looking ahead, the report says the U.S. solar market is set to grow a staggering 119% this year. Led by the utility-scale segment, GTM Research forecasts 16 GW of solar will be installed in the U.S. in 2016, more than doubling the record-breaking 7.3 GW installed in 2015.
The report adds that the residential and commercial markets will also experience strong growth in 2016. In fact, the U.S. is on the verge of the 1 millionth solar installation milestone.
Because the federal investment tax credit (ITC) was initially set to expire at the end of this year, developers and engineering, procurement and construction contractors filled their pipelines with projects that would come online in 2016. However, the report says the ITC extension in December provided long-term market certainty. Now, in 2016, state-level drivers and risks will move to the forefront and play even larger roles in the growth of both distributed and utility-scale solar.
According to the report, the rollout of new community solar programs, new utility-led efforts to enable corporate procurement of off-site solar and ongoing debate over the value of rooftop solar are three key trends that will drive U.S. solar demand throughout the year.
The report says that on the non-residential side, PV demand will be supported by a triple-digit-megawatt pipeline of community solar projects. Colorado, Massachusetts and Minnesota will collectively install more than 100 MW of community solar this year, the report adds.
In 2017, the residential and non-residential PV markets are both expected to grow year-over-year, but the report cautions that U.S. solar is still expected to drop on an annual basis due to the pull-in of utility PV demand in 2016.
By 2021, GTM Research expects the U.S. solar market to surpass 100 cumulative GW, with an annual install rate of 20 GW or more.
Superstores Have Huge Solar Potential
The rooftops of the U.S.’ so-called “big box” retail stores and shopping centers could host 62.3 GW of solar photovoltaic capacity - equivalent to the amount of electricity used by more than 7 million average U.S. homes and more than triple the solar PV capacity that has been installed in the country to date, according to a report released by Environment America and co-authored by Frontier Group.
The report notes that the 10 big-box companies with the largest amount of retail space in the U.S., alone, have enough rooftop space to host approximately 17 GW of solar capacity on their retail stores. Those companies include Walmart, Target, Home Depot, Lowe’s, Sears Holdings (including Sears and KMart), Macy’s, J.C. Penney, Kohl’s, Costco, and TJX (including Marshall’s and TJMaxx).
Environment America says the roofs of large stores are perfect locations for solar panels, as they are largely flat and vacant and almost always fully exposed to the sun. According to the report, the U.S. has more than 102,000 big-box retail stores, supercenters, large grocery stores and malls with more than 4.5 billion cumulative square feet of available rooftop space on which solar panels could be installed.
According to the latest data available summarized in the report, titled “Solar on Superstores,” Walmart leads the pack in total solar panels already installed (with at least 142 MW of on-site solar), followed by Costco, Kohl’s and IKEA. In addition, the report says the top 25 companies have installed a total of 1,462 solar energy systems at business locations across the U.S.
Rooftop solar is also good for business, the report continues. Electricity produced by rooftop panels on all of the big-box stores and shopping centers analyzed in the report could offset the annual electricity use of these buildings by 42%, saving these businesses $8.2 billion annually on their electricity bills.
For example, the report says Costco reported savings of $300 per day on average over three months after installing solar panels on two of its California stores.
The report adds that producing electricity on rooftops, close to where the electricity will be used, also reduces losses that happen during electricity transmission - losses that totaled 5% of electricity sales in 2012.
Environment America releases its report as the advocacy group calls on Minneapolis-based Target to go big on solar. The group says Target has pledged to put solar panels on a quarter of its stores, but the company could cut pollution dramatically and even save its customers money by putting panels on all of its nearly 2,000 rooftops in North America. According to Environment America, Target’s solar potential is second only behind competitor Walmart.
“Target has made progress on solar,” comments Bret Fanshaw, solar program coordinator with Environment America. “But, just like the ads say, we ‘expect more,’ especially when the company has so much potential to cut pollution, reduce energy waste and save money.”
In addition to calling directly on Target and other major retailers to install solar panels on all of their roofs, Environment America has urged government policies to help facilitate rooftop solar, such as net metering and third-party financing.
“Rather than waste energy through transmission or fire up expensive, polluting peaking power plants to meet temporary demand, we should do all we can to encourage the production of solar energy on our rooftops, close to where we live, work and shop,” concludes Fanshaw.
SunEdison To Shutter And Offload Solar Factories
Renewables company SunEdison Inc. has announced plans to close its Pasadena, Texas, polysilicon production facility; refocus its Portland, Ore., operations into a research and development (R&D) and technology demonstration center; and sell its Kuching, Malaysia, silicon wafer production plant.
The company says these actions build on its previously articulated strategy to refocus its solar materials operations on asset-light proprietary silicon production technologies via partnerships and joint ventures.
“We are moving forward on several fronts with our asset-light strategy for the upstream solar materials business,” states Ahmad R. Chatila, SunEdison’s CEO. “We believe our actions to re-engineer this business will maximize the value of our world-leading silicon production technologies, enabling SunEdison’s long-term downstream growth and curtailing headwinds caused by trade actions and the commoditization of certain products.”
As a result of these actions, the company expects to report a total of $266 million in non-cash impairment charges and a total of $171 million in other restructuring charges in its fiscal 2015 fourth-quarter financial results. It also expects to report approximately $10 million to $13 million in other restructuring charges in fiscal 2016.
SunEdison’s board of directors has decided to permanently close the company’s Pasadena, Texas, polysilicon manufacturing plant. The company says this action was taken, in part, as a consequence of a punitive Chinese trade action. China has imposed a 53.6% tariff on SunEdison’s polysilicon, pricing the U.S.-made polysilicon out of the market and thereby preventing SunEdison from running the plant that it has operated for more than 20 years, the company claims.
Polysilicon production has been terminated, and seed production will end by the third quarter of this year. Approximately 180 jobs are expected to be affected by the closure, subject to SunEdison’s collective bargaining obligations.
The company has also decided to refocus its activities at its Portland, Ore., facility. SunEdison says the facility has been consolidated into a cost-effective R&D, technology demonstration and training center for future licensees of the company’s continuous Czochralski silicon crystal ingot manufacturing technology.
As a result, SunEdison is halting high-volume production of silicon crystal ingot at the facility, an action that the company expects will reduce operating expenses to optimize cash utilization. Approximately 40 jobs will be affected by the changes.
In Asia, SunEdison has signed a definitive agreement to sell its silicon wafer manufacturing plant in Kuching, Malaysia, to China-based LONGi Silicon Materials Corp. As part of the transaction, SunEdison has secured a multiyear supply agreement for up to 3 GW of monocrystalline solar panels from a LONGi subsidiary, subject to certain conditions. SunEdison says this agreement provides the company with security of supply and cost-effective solar panels to fuel SunEdison’s global development.
Over the past year or so, SunEdison has faced a series of problems, including financial woes and several lawsuits. However, the company did recently settle one lawsuit with the shareholders of Latin America Power Holding BV for $28.5 million.
As a Fortune report explains, SunEdison entered a deal last year to acquire Latin America Power, which owns renewable energy projects in Peru and Chile, for about $700 million; however, SunEdison later backed out of the agreement. Latin America Power shareholders launched a lawsuit and sought $150 million.
In a press release, SunEdison says the parties, including its TerraForm Power yieldco, have resolved the case on mutually acceptable terms, and the acquisition will not be completed. SunEdison says none of the parties has admitted to any wrongdoing or liability with respect to the lawsuit claims.
Xcel And Community Solar Developers Reach Settlement In Colo.
Following claims that Xcel Energy wasn’t doing enough to further community solar in Colorado, the utility has announced a settlement agreement with solar developers that will see Xcel add up to 60 MW of new solar garden capacity in the state through its Solar*Rewards Community program this year.
Xcel Energy and developers Clean Energy Collective, Community Energy Inc. and SunShare filed a settlement with the Colorado Public Utilities Commission to add the new community solar through a request for proposals (RFP) this year. In the agreement, Xcel Energy also committed to participate in ownership of up to 4 MW of community solar, which will exclusively serve low-income customers and nonprofit 501(c)(3) organizations.
As the utility explains, a community solar garden is a community-shared solar array, with grid-connected subscribers, that allows consumers to access the benefits of solar energy without needing to install rooftop systems.
Xcel says the agreement, which must be approved by the commission, proposes to address several issues that had been contested by parties in recent years:
- Resolution of community solar RFPs for 2014 and 2016. By commission rules, between 6.5 MW and 30 MW of community solar can be added per year. Xcel Energy will now seek to add up to the maximum amount allowed;
- Revision to customer-specific rate calculations for commercial and industrial customers, on a going-forward basis (current solar garden customers will not be impacted). Long term, this will allow Xcel Energy to revise the rules for the further expansion of the program and keep costs lower for both participants and non-participants; and
- Provide transparency and clarity for potential community solar garden providers to ensure a broad marketplace for participation.
“This settlement is a prime example of Xcel Energy’s efforts to deliver to its customers more choices for their energy needs, including our low-income and nonprofit customers,” says David Eves, president of Public Service Co. of Colorado, an Xcel Energy company.
“We are pleased to work closely with Xcel Energy to help ensure the Solar*Rewards Community program is a win for everyone. The outcome is a testament to the value of community solar in the state’s current and future energy strategy,” adds Paul Spencer, founder and CEO of Clean Energy Collective.
Solar Job Market Is ‘Booming,’ California Ranks No. 1
The Solar Foundation, an independent nonprofit research and education organization, has released state-by-state data from its annual National Solar Jobs Census series via the State Solar Jobs Census Map.
The new numbers show that California not only maintained its No. 1 spot in 2015, but also created over 20,000 new solar jobs last year - a 38% increase - and became the first state to surpass the 75,000 solar jobs benchmark.
The California Solar Energy Industries Association (CALSEIA) has praised local policymakers for their continued support of this new clean energy market, pointing to recent decisions around net metering, the extension of the federal investment tax credit, and the state’s 50% by 2030 renewable portfolio standard.
“Solar power is a bright spot in California’s economy, bringing jobs and economic development to every corner of the state,” says Bernadette Del Chiaro, executive director of CALSEIA. “While conventional energy industries are losing jobs, we are seeing record growth and bringing clean air and climate solutions along the way.”
According to The Solar Foundation, Massachusetts solidified the No. 2 position in 2015 while becoming the second state to have more than 15,000 solar jobs. In addition to California and Massachusetts, Nevada, Florida, Maryland, Tennessee, Oregon, Michigan and Utah are among the top 20 solar jobs states that grew by 30% or more.
“Solar power not only helps protect our environment and health - it helps accelerate our economic success,” says Colorado Gov. John Hickenlooper. “This is another example of how Colorado’s diverse energy economy contributes to our overall growth and stability. We are pleased that the solar industry continues to find Colorado a good state for business.”
“Massachusetts is home to a thriving clean energy economy with innovative companies, world-class research institutions and a skilled workforce, and we’re proud that the commonwealth continues to maintain its national clean energy leadership position,” adds Massachusetts Gov. Charlie Baker.
The Solar Foundation says 33 states, including the District of Columbia, saw positive solar jobs growth in 2015 over the previous year, and many states experienced double-digit increases.
“Solar job creation is booming across the country. California’s 20,000 new jobs marks an industry milestone - but states like Utah, Colorado, Rhode Island, South Carolina and Virginia demonstrate the regional diversity of the industry’s growth,” says Andrea Luecke, president and executive director of The Solar Foundation. “Our data since 2012 show that half the states in the country have at least doubled their solar workforce.”
The Solar Foundation notes this is the first year it has tracked solar jobs by congressional district for all 50 states, providing information for nearly all 436 federal congressional districts and more than 6,000 state legislative districts. The organization says there are now 61 federal congressional districts with at least 1,000 solar jobs; 132 districts with more than 500; and 222 districts with 250 or more solar industry jobs.
Other key rankings from the State Solar Jobs Census include the following:
Most Solar Jobs: 1. California, 2. Massachusetts, 3. Nevada, 4. New York, 5. New Jersey.
Highest % Solar Jobs Growth: 1. Rhode Island, 2. South Carolina, 3. Nebraska, 4. Tennessee, 5. Louisiana.
Most Solar Jobs Per Capita: 1. Nevada, 2. Vermont, 3. Hawaii, 4. California, 5. Massachusetts.
Highest % Solar Capacity Growth 2014-15 (estimated): 1. South Carolina, 2. Utah, 3. Georgia, 4. Oregon, 5. New Hampshire.
The Solar Foundation and BW Research Partnership conducted the State Census effort. More information can be found at solarstates.org.
Tucson Electric Power Readies For Clean Power Plan
To help satisfy the U.S. Environmental Protection Agency’s Clean Power Plan (CPP), Arizona-based Tucson Electric Power (TEP) anticipates an additional 1.1 GW of new renewable capacity by the end of 2030, boosting its total renewable energy portfolio to approximately 1.5 GW.
The utility has revealed its intentions in a preliminary 2016 Integrated Resource Plan (IRP). Under direction from the Arizona Corporation Commission, TEP and other regulated Arizona power providers have filed preliminary IRPs because of uncertainties raised by the CPP, a mandate to reduce carbon-dioxide emissions from power plants.
TEP says it and other stakeholders spent the last several months working with the Arizona Department of Environmental Quality to identify strategies that could be used to satisfy state CPP requirements.
“Our initial analysis suggests that TEP’s resource-diversification strategy is consistent with the targets set forth in the final CPP,” says David G. Hutchens, TEP’s president and CEO.
Although the U.S. Supreme Court recently suspended enforcement of CPP requirements in response to a legal challenge, Hutchens says, “We will continue working toward our goals as the CPP’s status is resolved.”
TEP says it will keep investing in large solar arrays and other community-scale renewable resources. The IRP also explores how distributed energy resources, such as rooftop solar panels, have created new challenges and opportunities for utilities and their customers. TEP expects to use more sensing and measurement devices to respond to the increase of intermittent renewable resources on its distribution system, effectively enabling some portions of the local electric grid to function as stand-alone microgrid systems.
Furthermore, the utility is examining how energy storage and smart grid technologies can improve reliability. For example, construction is expected to begin this year on two 10 MW storage projects that will be used to study how energy storage can help maintain the required balance between energy demand and supply, as well as other energy management requirements.
Energy-efficiency measures continue to be cost-effective resource options, TEP adds. The utility says it will continue working to meet the aggressive goals outlined in Arizona’s Energy Efficiency Standard, which calls on utilities to achieve cumulative energy savings of 22% by 2020. This year, TEP will offer several new energy-efficiency programs.
The company has ceased burning coal at its Sundt generating station in Tucson and will lose 170 MW of coal-fired capacity when Unit 2 at the San Juan Generating Station in New Mexico is shut down at the end of 2017. TEP will continue to own a 170 MW share of Unit 1 at San Juan but has an option to exit that unit in 2022.
However, TEP emphasizes that reductions in coal-fired resources will not diminish the importance of the coal-fired Springerville Generating Station (SGS) in eastern Arizona.
“SGS is the lowest-cost, most efficiently run coal resource in our fleet and has always been part of our long-term resource planning,” explains Hutchens. “We are committed to a diversification strategy that benefits from capacity reductions at other TEP-owned coal-fired power plants.”
Off-Grid Solar Market Represents Opportunity For Investors
By 2020, the sales of off-grid solar products in emerging markets are expected to reach $3.1 billion, providing improved energy for 99 million households with no access to the grid, according to a new report released by the World Bank Group and Bloomberg New Energy Finance (BNEF), in collaboration with the Global Off-Grid Lighting Association.
The report, titled “Off-Grid Solar Market Trends,” tracks the technological advances and innovative business models that have emerged to transform the lives of millions through affordable modern solar energy services. It shows that the off-grid solar industry is booming and that a growing wave of development partners and investors is committing significant funds, with a primary focus on pay-as-you-go business models.
The report finds that annual investments into the industry have risen to $276 million in 2015 - a 15-fold increase since 2012. It also shows that 89 million people in Africa and Asia already enjoy improved access to energy through the use of off-grid solar products.
“The report provides a comprehensive view of the state of one of the most impactful industries in the global economy today,” says the World Bank’s Russell Sturm.
According to the report, solar-powered portable lights and home kits offer a safer, cheaper and environmentally friendlier service to the 1.2 billion people who live without access to the power grid and currently spend about $27 billion annually on fuel-based lighting and mobile-phone charging technologies.
“The pay-as-you-go business model combines rapid innovation in solar, batteries and LED lights with the transformative power of mobile communication technology,” says BNEF’s Itamar Orlandi. “This allows new companies to build services, sales and a deep understanding of their customers at an accelerating pace, which, in turn, is attracting new sources of growth capital into the industry.”
New & Noteworthy
Another Record-Breaking Year For U.S. Solar
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