December 18, 2018 | By RGR Marketing Blog

Solar’s Growth Continues, Despite Some Challenges

When the Trump Administration took office, the president voiced his support for the country’s coal industry instead of continuing on the path to renewable energy. This was met with plenty of opposition from the solar industry, and from Americans in general. After all, why concentrate on an old, dirty form of energy when ample clean, sustainable energy is available to us every day?

But as with all presidents, what is said isn’t always what happens. Despite Trump’s love of coal and many of the policies that he has passed that have proven unfavorable to the solar industry, there is a reality that still needs to be faced.

Coal Is Giving Up Ground, Nuclear Holds Stable

In the November 6, 2018 Short-Term Energy Outlook analysis released by the U.S. Energy Information Administration (EIA), coal and nuclear use will continue to drop in 2019. The EIA forecasts that the electricity generation share from coal will average 26% in 2019, which is down 2% from this year and 4% from 2017.

Nuclear use dropped this year from 20% to 19%, and the EIA is expecting that number to hold steady through 2019.

Natural Gas Reliance Will Increase

Natural gas isn’t as dirty as coal, but it is still dirty when compared to solar and wind energy production. Despite this, the utility-scale electricity generation from natural gas-fired power plants rose from 32% in 2017 to 35% in 2018. The EIA is predicting natural gas use for energy production to rise to 36% in 2019.

Solar Energy Generation Will Climb Slightly

EIA expects total U.S. solar generation will rise from 268,000 MWh/d in 2018 (up 27% from 2017) to 303,000 MWh/d in 2019 (up 13%). In recent years, the industry has seen a shift from fixed-tilt solar PV systems to tracking systems. One of the reasons for solar power’s continued growth has been the introduction of tracking systems to the market.

Despite tracking systems being more expensive to manufacture and install, the additional electricity generated by following the path of the sun often exceeds the added expense.

Solar Finds Help From the IRS

One of the things that is helping the solar industry withstand Trump’s often unfavorable energy policies comes from the Internal Revenue Service. Back in June, the IRS gave solar developers more opportunities to secure tax breaks, and it has already started paying off with greater solar generation installations taking place nationwide.

The IRS is allowing solar developers the ability to claim a 30% investment tax credit, the biggest subsidy available. However, to qualify for the tax break, solar developers “must invest at least 5% of the total expected cost or start significant physical work on the project before the end of 2019.” The solar power generators also need to be up and running by 2023.

Most importantly, the tax break offered by the IRS gives solar developers the ability to essentially avoid the 30% tariff Trump imposed on imported solar panels earlier in the year.

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