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In 2011, however, this pattern is likely to end. A slowdown in major European markets (most notably Italy and Germany)2, combined with the continued strength of the U.S. market, has already led most PV manufacturers and developers to seek opportunities in the U.S. We anticipate an exciting, if volatile, year in the U.S. PV market. This report catalogues the beginning of this period.

In 2010, the U.S. installed 887 megawatts (MW) of grid-connected PV, 104% growth over the 435 MW installed in 2009. Despite this, U.S. market share of global installations fell to 5.1%, down from 6.0% in 2009. Over the past six years, the U.S. has been growing at a relatively even pace with the global market; as a result, U.S. market share of global installations has consistently hovered between 5% and 7% since 2005. In 2011, however, this pattern is likely to end. A first-half slowdown in major European markets (most notably Italy and Germany) combined with continued strength in the U.S. has already led most PV manufacturers and developers to seek opportunities in the U.S. market with many in the industry expecting the it to be the largest market in the world within a few years.

Through the third quarter of 2011, the U.S. solar market installed more than 1 gigawatt (GW) of grid-connected photovoltaics (PV) on the year, far surpassing the 2010 annual total of 887 megawatts (MW). The third quarter of 2011 was also the largest quarter for installations ever seen in the U.S., supported by utility-scale project completions and rapidly declining prices for PV modules.

The U.S. solar market is increasingly becoming a central focus of global industry attention, but state-by-state differences in regulations, incentives, utilities, and financing structures introduce more complexities in comparison to other markets. As a result, it has long been difficult to track and understand the changing market dynamics for solar energy in the U.S.

Dear Mr. Resch

SEIA Response letter to the Bicameral Task Force on Climate Change February 2013