Hello, solar enthusiasts! Ever wondered about the future of community solar installations in the United States? Well, I have news for you. A fresh report from Wood Mackenzie, a leading energy research and consultancy company, forecasts a substantial increase in installations. It’s exciting to see that cumulative community solar installations are expected to more than double, moving from less than 7 GW today to over 14 GW by 2029.
Now, you may wonder, what exactly is community solar? Community solar typically involves a customer subscribing to a part of an off-site solar facility’s power output. The payoff? These lucky customers receive credits on their power bills for the electricity produced by their share of the facility. Now isn’t that a great deal for both individuals and solar companies?
As per Wood Mackenzie’s report, the United States’ community solar market has tripled since 2020, albeit with a slowdown beginning to show in existing state markets. A growth rate of 5% nationally is projected through 2026, but sadly, we might see a contraction of around 11% through to 2029.
One particular event has considerably altered the outlook. The May 2024 decision on California community solar has resulted in a critical 14% reduction in the national outlook over five years. The future growth of community solar will now largely rely on legislation enacted to allow the expansion of new state markets.
Let me fill you in on some possible scenarios. On a bullish note, Wood Mackenzie is hoping for a 21% increase in existing markets. The opposite side, the bearish case, warns us of a potential 20% decrease. Notably, these situations do not account for the formation of brand-new state markets. States like Ohio, Pennsylvania, Michigan, and Wisconsin are showing significant interest and pre-development project pipelines. With these players in the game, we could see a minimum 17% surge from the base forecast, reaching a phenomenal 17.1 GW installed in 2029.
Regardless of the backdrop, community solar developers are continuously working on utilizing federal incentives. That said, challenges persist. They are currently on a steep learning curve in their attempt to secure tax credit adders from the Inflation Reduction Act.
You may also find it reassuring to know that Wood Mackenzie expects that 3.6 GW of community solar will serve low- to moderate-income households by 2029. Currently, around 829 MW of community solar serves LMI customers. Given the availability of LMI tax credit adders, Solar for All funding, and the evolution of state-level LMI requirements, the share of community solar dedicated to LMI subscribers is projected to rise to nearly 25% by 2025.
If you’re considering solar panels for your home or exploring a solar array for home, community solar presents a wonderful alternative. The solar industry continues to be a diverse and exciting space, with companies, subscribers, developers, and manufacturers all playing a part in moving toward a greener and more sustainable future. Stay tuned for more updates from the exciting world of solar!
Original Articlehttps://pv-magazine-usa.com/2024/08/09/wood-mackenzie-u-s-community-solar-to-double-in-five-years/
