The U.S. installed 252 megawatts of solar-panel generators in the first quarter, up two-thirds over the same period a year ago, while U.S. factories produced 348 megawatts of solar panels, a third more than a year ago, according to a study released Thursday.
Solar-panel installations for companies, government organizations and other non-residential properties more than doubled in the first quarter, driving much of the growth, according to the study, by GTM Research of Boston.
Meanwhile, U.S. factories, primarily in the West and Midwest, ramped up production of solar equipment, particularly facilities that serve the domestic market, according to the study.
U.S. solar-panel installations are likely to double this year over 2010 to roughly 1,800 megawatts, helped by a steep drop in European demand and U.S. renewable energy incentives, the firm predicted. That figure includes nearly 900 megawatts of utility-scale solar farms expected to be completed this year. It does not include nearly 60 megawatts of solar-thermal power development, according to the study.
Almost half of U.S. solar-panel systems were installed in California, with about one-sixth in New Jersey and the rest in Arizona, Pennsylvania, Colorado, New York and other states.
Lower prices for solar panels and other equipment together with state government-backed incentives have driven the growth, GTM Research said.
A rush by solar-power developers to start construction before the Dec. 31, 2010, expiration of a key federal incentive also drove the boost in first-quarter project completiosn, GTM Research said.
In December, Congress extended the incentive program, which offers eligible solar-power developers cash in the amount of a 30% investment tax credit for renewable energy projects, for another year.
As global prices for solar panels have fallen, prices for U.S. installed solar-panel systems fell over the fourth quarter by 6% for non-residential projects, to an average of $5.35 a watt, and by 5% to $3.85 a watt for utility-scale projects, GTM Research found. The average solar-system price for homeowners remained flat at $6.40 a watt.
The first quarter of 2012 is likely to resemble this year's, as developers once again scramble to start construction before the end of 2011, when the incentive expires, and many projects are completed the following year, GTM Research predicted.
