USA projected to become largest PV market by 2013

LONDON, UK: The US photovoltaic (PV) market will become the largest market for annual PV installations in 2013, overtaking Germany, Italy, and Japan.

An estimated 900 MW of installed capacity came online during 2010 in the US PV market and that number is expected to almost double in 2011. Renewable energy technologies are receiving a strong push in the US, with utility, industrial, and commercial PV installations expected to drive growth.

Even the US Army and Navy are examining possible PV solutions to energy supplies for troops and equipment. Josh Flood, senior analyst, says, “The US federal government continues to focus on developing energy sources other than fossil fuels by extending its Investment Tax Credits (ITC) to 2016, and US states are setting ambitious Renewable Energy Standards (RES) or Renewable Portfolio Standards (RPS).”

Thirty US states already have RES or RPS. These renewable energy objectives are targets for major state utilities to reach by generating or purchasing a percentage of their energy from renewable energy sources.

The Federal Energy Regulatory Commission (FERC) clarified a ruling last year that previously had inhibited states from setting feed-in tariffs (FiTs) for renewable energy technologies. ABI Research predicts a number of states will introduce FiTs before the end of 2012. Currently, California has a RPS target of 33 percent by 2020 and is likely to be the first state to introduce FiTs for PV power generation.

The US PV market is set to witness explosive growth over the next few years, with a forecast of 5 GW installed during 2013. This is good news for companies such as First Solar, SunPower Corp, and Solar World. Flood says, “These PV companies can expect to achieve considerable growth from the US market. In total, the three will add a combined 3,000 MW of additional manufacturing capacity for PV modules during 2011 and 2012.”