United States Solar Energy Market Slated to Amass Considerable Revenue—Projected to Grow at a CAGR of 16.3% by 2028
Published | 10 January 2022
United States solar energy market is thriving owing to the growing investment in renewable energy from both government and major players across industries. Additionally, the growing demand for renewable energy sources, as well as the trend towards carbon neutrality, is driving the market forward.
A study, recently conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the United States Solar Energy market is flourishing and projected to grow at a CAGR of 16.3% during the forecast period (2022-2028). Solar energy is one of the cleanest sources of renewable energy available on this planet. As solar power becomes more economical, accessible, and prevalent in the United States, it is driving the growth of the United States solar energy market. Solar power capacity in the United States has increased from 0.34 gigawatts (GW) in 2008 to an estimated 97.2 gigawatts (GW) in 2021, due to the increasing investment in solar projects in the country. The amount is sufficient to power 18 million ordinary American households. Thus, increasing investment in solar energy projects is driving the growth of the solar energy market in the United States.
Reducing the Cost of Solar Energy
The United States Department of Energy (DOE) has undertaken research initiatives to reduce the cost and improve the performance of a wide range of electricity-generating technologies. Research programs conducted by DOE could contribute to substantial reductions in the prices and emissions of the US power sector. Solar electricity generating technologies need significant cost reductions for concentrating solar power (CSP) and solar photovoltaic (PV) systems so they can compete on a significant scale with conventionally generated electricity. To maintain the momentum for cost reductions in solar technologies, the DOE recently established cost targets for 2030 to make solar energy one of the least-expensive sources of new electricity in the US. CSP-based systems are aimed at achieving low-cost-of-energy (LCOE) of $0.05/kWh by 2030 for dispatchable, high-capacity-factor CSP-TES plants.
Fortune 500 Companies Integrating Solar Energy
Major firms in the United States, such as Apple, Amazon, Walmart, Target, and Google invest heavily in solar and renewable energy. Through 2019, the top corporate solar users in the United States deployed more than 8,300 MW of capacity across 38,000 different facilities across the country. In April 2021, Amazon announced the development of nine new utility-scale wind and solar energy projects in North America and Europe, making it the world's largest corporate buyer of renewable energy. The company now has 206 renewable energy projects in operation around the globe, including 71 utility-scale wind and solar projects and 135 solar rooftops on facilities and stores. To date, Amazon has generated 8.5 gigawatts of electricity globally, putting it on track to achieve 100% renewable energy by 2025, five years ahead of the initial 2030 target.
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Photovoltaic Systems Segment to Cater the Largest Share in the Market
Based on technology, the United States solar energy market is segmented into solar photovoltaic systems and concentrated solar power systems. Solar photovoltaic (PV) systems make up the largest share of the United States solar energy market, generating substantial revenues. The cost of solar PV panels has decreased by around 70% since 2014. Thus, solar energy markets are rapidly expanding across the country as solar electricity is now competitively priced with conventional energy sources in most states. The richness and potential of solar energy in the United States is astounding with PV panels covering 22,000 square miles of the country's total land area. Furthermore, Solar PV is anticipated to expand the quickest among all renewable energy sources between 2020 and 2050. There have been instances when solar PV met more than half of demand on some solar-intensive grids, like California Independent System Operator.
Impact of COVID-19 on the United States Solar Energy Market
The ongoing COVID-19-pandemic has impacted the growth of the United States solar energy market. Businesses, such as renewables, are also susceptible to COVID-19 hazards. Lockdown measures in the United States had reached their climax on April 5, 2020. Even while countries throughout the world began gradually lifting some of these restrictions, COVID-19 led to construction delays and lower-than-expected investment, forcing the United States to reduce capacity expansion predictions for 2020 by more than 15%. While the impact is generally felt across the board, COVID-19-related hazards are not evenly dispersed, as distributed PV got more affected than utility-scale installations.
United States Solar Energy Market- Competitive Landscape
Some of the key players in the United States solar energy market include First Solar, NextEra Energy Inc, Swinerton Renewable Energy, 8minutenergy Renewables LLC, M. A. Mortenson Company, Bright Source Energy, SunPower Corporation, Canadian Solar Inc, EcoPlexus, Inc., Sustainable Power Group, Recurrent Energy, Cypress Creek Renewables, SunPower, Hecate Energy LLC, and other prominent players.
The increasing government initiatives to install solar energy plants across the region and achieve net-zero emission by 2030 have driven the competition within the market. Furthermore, the United States government is collaborating with foreign companies to commission and install new projects, which has increased competition in the market.
In December 2021, Shell announced its plan to extend its global solar portfolio by purchasing a United States solar and energy-storage company to achieve net-zero emissions by 2050. Shell's renewable and low-carbon energy business, Shell New Energies, will acquire Savion, a Kansas City-based renewable energy company with over 130 solar and energy storage projects in various stages of development throughout 26 states, totalling 18 GW. Utilities, as well as big industrial and commercial companies, are among its customers.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the United States solar energy market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the United States solar energy market, along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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