According to the most recent data released by Wood Mackenzie Power & Renewables and the Solar Energy Industries Association (SEIA), the residential solar market in the U.S. wrapped up Q1 with over 2 million solar photovoltaic installations.
Michelle Davis, Senior Solar Analyst at SEIA, states:
“According to our latest forecasts, by 2024, there will be on average, one solar installation per minute. That’s up from one installation every 10 minutes in 2010.”
This significant milestone is an incredible achievement for the U.S. solar market. Considering it took well over 40 years for the industry to reach 1 million installations in 2016, achieving the next 1 million was completed just three years later. In addition, as we continue to experience a rise of solar, Wood Mackenzie forecasts that the total number of installations will double by 2023.
Solar in U.S. State Markets
As the industry experiences gradual growth within the residential sector, the following state markets are leading in solar: California, Arizona, New York, Hawaii, New Jersey, Massachusetts, and Florida. California continues to rank as the largest solar market in the U.S. At the end of Q4, the total capacity of solar installed is capable of powering 6,368,607 homes. In fact, California accounts for 51% of the first million installations, and 43% of the second million. The slight decline in market share stems from developing markets that are experiencing faster growth than California.
As the Federal Tax Credit steps down to 26% after 2019, and drops to 22% in 2021, more and more homeowners will consider the switch to solar to maximize savings. Furthermore, California's home solar mandate will definitely impact numbers of installments in the upcoming years.
Pick My Solar CEO and Co-Founder, Max Aram, shares his insight on the recently conducted data:
“This is an incredible milestone. It took our industry over 10 years to reach the first 1 million, 3 years to hit the second million; now we must focus on minimizing that interval. Reaching 1 million a year would be an incredible target for our industry. We can’t accomplish this target unless we make the process of going solar as simple as booking a flight and at the same time, reduce the cost of capital necessary to finance the solar systems. This is what Pick My Solar is working on.”
What are your thoughts on the growth of the solar market? Share your thoughts in the comments below.
Cover media credit: Wood Mackenzie