U.S. installations soared in 2007,
but it’s up to Congress to help
assure continued growth.
PV Systems Trend Larger
U.S. AIR FORCE PHO TO BY MASTER SG T. ROBERT VALENCA
Last year annual U.S. photovoltaic (PV)
installations grew 40 percent over 2006, to
more than 200 megawatts DC (MWdc).
Growth in grid-connected installations has
been especially strong, with 46 percent
growth in 2007 and 53 percent in 2006.
Although PV installation growth has been
impressive for many years, growth took
off in 2006 with the initiation of the federal investment tax credit ( 30 percent of the
cost of a solar energy system, capped at
$2,000 for a residential installation). Since
2005, the annual installed capacity has more
than doubled (see Figure 1). More than
13,000 homes and businesses connected
photovoltaics to the grid in 2007.
Both residential and nonresidential
installations grew significantly in 2007
(see Figure 2). But while the market share
for residential installations has held steady
at about one-third for the past three years,
installed capacity of large installations
grew fastest. A 14-MW installation by MMA
Renewable Ventures at Nellis Air Force Base
in Nevada and an 8-MW SunEdison installation for Xcel Energy in Colorado were
the largest installations. Together they
accounted for 15 percent of the annual
installed capacity.
Like these two projects, virtually all large
installations and many smaller nonresidential ones are financed through power purchase agreements. Through a PPA, a third
party finances and owns the solar installation and receives the incentives and tax
SOLAR
By Larry Sherwood
A 14-megawatt installation by MMA Renewable Ventures at Nellis Air Force Base in
Nevada (above) and an 8-MW SunEdison
installation for Xcel Energy in Colorado were
the largest installations in 2007. Like these
two projects, virtually all large installations
are financed through power-purchase
agreements.
The United States saw a solar boom in
2007. Installations of photovoltaics,
solar water-heating and solar thermal
electric systems all grew quickly compared to previous years. California continues
to be the largest U.S. market, but other states
are beginning to gain ground as they introduce favorable policies and incentives. How
well these growth rates will be maintained,
however, depends to a great degree on
whether Congress extends federal incentives
set to expire Dec. 31. Doing so will keep the
installations coming, renewable energy flowing, the cost per watt produced declining
and the green jobs market flourishing.
