USA Solar Market will boom in 2016

USA could become the biggest country in terms of solar demand in 2016 and may just edge out China, as the country sees a record number of large scale solar installations getting completed this year. Most of these projects were started in 2014-15, with completion date before 2016 end. The main reason was that the developers wanted to get the ITC rebate before it ended in 2016. Though the ITC has been extended, these projects will get completed this year leading to a skyrocketing demand with the 15 GW predicted this year which is up 60%. China also did 15 GW of solar capacity installation in 2015 and should do a similar amount this year. The problem in China is that a number of utility installations are not getting connected to the grid and a sharp growth from here on is difficult. Starting rooftop solar projects in China has also been difficult due a wide variety of issues such as utility resistance, weak rooftop structure, rooftop rights, lack of financing etc.

USA should be one the biggest markets for solar energy in the foreseeable future, despite recent setback in Nevada where the electricity regulation sharply reduced the net metering rates besides imposing a monthly fee. The utility industry is very strong in USA and will resist solar energy growth, however the trend is inevitable for solar energy given its continuously falling costs. Besides USA is seeing a rising number of solar jobs, which is pushing politicians to give favorable rulings for solar energy. While Democrats are firmly in support of solar energy, even Republicans are coming around to push solar energy given the obvious benefits. Even without accounting for carbon emissions, solar energy is competing to become cheaper in gas and coal in numerous USA states. With the US ITC extension now firmly in place of the next 5 years, solar energy should keep growing rapidly.

Solar energy was the biggest source of electricity growth in USA in 2015, even outpacing gas which has been growing sharply due to falling prices.