October 1, 2014 | By RGR Marketing Blog

Why the U.S. Solar Industry Is Still Growing

 

Photovoltaic technology has been around for many years, and for much of that time, it’s been a niche product; beloved by a small segment of the population, but largely ignored by the rank and file.

Now, the situation seems to be changing. So much so, in fact, that some utility companies are lobbying to see “net metering” laws scaled back. Net metering allows solar-powered households and businesses to sell their excess power back to the utility companies, and some older utility companies are none too keen on having the tables turned on them.

So how fast is solar growing, exactly? And what’s behind this rapid growth in the solar sector?

How Hot Is Solar?

Did you know that more than 75% of all existent photovoltaic installations in the U.S. have come online in the last 3 years?

That interesting bit of trivia clearly illustrates just how hot the solar market is getting in the United States. The U.S. solar market grew 41% in 2013 alone, and 2014 is shaping up to be another record-shattering year. By the dawn of 2015, it’s projected that solar capacity in this country will have reached 18 gigawatts: enough to power 3.6 million homes.

During the first two quarters of 2014, the residential and commercial market segments were responsible for almost half of this unprecedented growth in solar. The residential segment has been consistently expanding over the years, and it’s a trend that looks poised to continue for the foreseeable future.

At this point, more than half a million U.S. residences and businesses are solar powered. It’s still a drop in the bucket, but that bucket is getting fuller all the time.

Solar Power Is Getting Quite Affordable

If you’ve been in the solar business for several years, then you’re acutely aware of how quickly prices have fallen on photovoltaic systems. Since way back in 1977, the average cost of solar panels has fallen from more than $76 per watt of production capacity to less than 62 cents per watt. And the cost has fallen by half in the last few years alone.

Technological breakthroughs and economies of scale continue to make solar panels more efficient and more affordable. The cost of solar power has finally reached parity with the cost of buying electricity from the utilities. In fact, solar is now cheaper for many of your customers.

Solar Is More Efficient Than Ever

Another factor driving the rapid growth in solar is the fact that solar technology is a lot more efficient than it used to be. Households whose energy requirements would have necessitated an entire roof full of panels can now get by with smaller-footprint systems, further reducing the once prominent barrier to entry.

Supportive Legislation Is Also Driving Solar Growth

Public policy has definitely been a contributing factor in solar energy’s recent meteoric rise. The solar Investment Tax Credit, Net Energy Metering, and Renewable Portfolio Standards have made solar energy a very attractive option for many consumers and businesses.

[Photo Via: Grist]

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