by Brianna Crandall — March 14, 2014—Continuing its explosive growth, the U.S. solar industry had a record-shattering year in 2013, according to GTM Research (a division of Greentech Media) and the Solar Energy Industries Association’s (SEIA) U.S. Solar Market Insight: 2013 Year-in-Review. According to the report, photovoltaic (PV) installations continued to proliferate, increasing 41% over 2012 to reach 4,751 megawatts (MW). In addition, 410 megawatts (MW) of concentrating solar power (CSP) came online.
New U.S. Electricity Generation Capacity, 2012 vs. 2013. Source: GTM Research, FERC
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The report found that solar was the second-largest source of new electricity generating capacity in the United States, exceeded only by natural gas. Additionally, the cost to install solar fell throughout the year, ending the year 15% below the mark set at the end of 2012. At the end of 2013 there were more than 440,000 operating solar electric systems in the United States totaling over 12,000 MW of PV and 918 MW of concentrating solar power (CSP).
The nation installed 2,106 MW in the fourth quarter alone, 44% of the annual total, according to the report. This makes the fourth quarter of 2013 by far the largest quarter in the history of the U.S. market, exceeding the next largest quarter by 60%, said SEIA. The organization noted that solar created tens of thousands of new American jobs and pumped tens of billions of dollars into the U.S. economy last year alone, and that more solar has been installed in the nation in the last 18 months than in the 30 years prior.
U.S. PV Installations and Average System Price, 2000-2013. Source: GTM Research/SEIA U.S. Solar Market Insight: 2013 Year-in-Review
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“Perhaps more important than the numbers,” writes Shayle Kann, Senior Vice President at GTM Research, “2013 offered the U.S. solar market the first real glimpse of its path toward mainstream status. The combination of rapid customer adoption, grassroots support for solar, improved financing terms, and public market successes displayed clear gains for solar in the eyes of both the general population and the investment community.”
California continues to lead the U.S. market and installed more than half of all U.S. solar in 2013. In fact, the state installed more solar last year than the entire United States did in 2011. Despite installing the second-most PV in 2013 with 421 MW, Arizona did not reach its 2012 total of 710 MW.
On the other side of the spectrum, North Carolina, Massachusetts, and Georgia had major growth years, installing a combined 663 MW, more than doubling their combined total from the year before. On the whole, the top five states (California, Arizona, North Carolina, Massachusetts, and New Jersey) accounted for 81% of all U.S. PV installations in 2013.
GTM Research and SEIA forecast another strong year in 2014 with 26% growth in the U.S. solar market. This will bring annual installations up to nearly 6 gigawatts, and the cumulative total will be just shy of the twenty-gigawatt milestone.
Key findings of the report include:
US Solar Installation Map. Source: GTM Research/SEIA U.S. Solar Market Insight: 2013 Year-in-Review
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- The USA installed 4,751 MW of solar photovoltaic (PV) in 2013, up 41% over 2012 and nearly fifteen times the amount installed in 2008.
- There is now a total of 12.1 GW of PV and 918 MW of CSP operating in the nation.
- There were 140,000 individual solar installations in the USA in 2013, and a total of over 440,000 systems operating in total today.
- More solar has been installed in the nation in the last 18 months than in the 30 years prior.
- The market value of all PV installations completed in 2013 was $13.7 billion.
- Solar accounted for 29% of all new electricity generation capacity in 2013, up from 10% in 2012. This made solar the second-largest source of new generating capacity behind natural gas.
- Weighted-average PV system prices fell 15% in 2013, reaching a new low of $2.59/W in the fourth quarter.
- SEIA forecasts 26% PV installation growth in 2014, with installations reaching nearly 6 GW. Growth will occur in all segments but will be most rapid in the residential market.
- The USA installed 410 MW of concentrating solar (CSP) in 2013, increasing total CSP capacity in the nation more than 80%
- The wave of CSP installations slated for completion at the end of 2013 into 2014 kicked off with the 280 MWac Solana project and the Genesis Solar project’s initial 125 MWac phase. In early 2014, Brightsource’s iconic Ivanpah project also began operating and SolarReserve’s Crescent Dunes project began commissioning.
