Utility Solar Market Update - Q3 2021

You are here

> Utility Solar Market Update - Q3 2021

Utility Solar Market Update - Q3 2021

Whitney Voute, 23 November 2021

Q3 2021 UTILITY-SCALE SOLAR MARKET UPDATE1

Almost 4.2GWDC of US utility-scale PV was installed in the second quarter of 2021, making this the strongest Q2 on record in terms of capacity installations. The previous record of 2.9GWDC installed was in Q2 2020, indicating the strong growth over the last 12 months. Almost half of the installations in Q2 2021 came from Texas (1.7GWDC), followed by Florida accounting 14% of installations at 0.5GWDC. The key drivers for this growth over the quarter were increased corporate and utility procurement as well as coal retirements. The 4.2GWDC of solar represents:

  • a 48% increase compared to Q2 2020;
  • a 252% increase compared to Q2 five years prior; and
  • the largest second quarter for US utility-scale PV ever recorded.

 Figure 1: US utility-scale PV capacity installed by quarter

 

Over the course of Q2 2021, 9.3GWDC of contracts were signed, pushing the US utility-scale PV contracted pipeline to a record high of 85GWDC. According to Wood Mackenzie, 89% of utility-scale PV within the pipeline have a PPA contracted, with 29% of the PPAs contracted with corporate offtakers. Renewable energy procurement is expected to be accelerated by large C&I buyers (who focus on fulfilling their energy and renewable energy credit requirements), evolving ESG goals and corporate reporting requirements.

The US utility-scale PV pipeline remains robust with 19.4GWDC of projects currently under construction. Of this, 10.2GWDC is expected to come online throughout the remainder of 2021, to bring the total expected installations for 2021 to be over 19 GWDC. Utility-scale solar PV’s double digit annual growth is expected to continue to 2023, as developers continue to build out their pipelines that were accrued at the 26% ITC rate. Even as the ITC drops to 10% in 2024, the market is still expecting at least 20GWDC installed each year due to the increasing demand for clean energy coupled with the decreasing cost of solar. Wood Mackenzie forecasts that between 2021 and 2026 more than 130 GWDC of utility-scale solar will be installed, as seen in the figure below.

 Figure 2: US utility-scale PV capacity installed and forecasted by year

 

The Bipartisan Infrastructure Bill passed in November 2021, including approximately $65billion in transmission investments aimed at increasing the ability of the grid to handle large volumes of renewables. The Democrats aim to include further clean energy policies in a second bill, Build Back Better, which is likely to be voted on later in November following costing from the Congressional Budget Office. These could include Investment and Production Tax Credit (ITC & PTC) extensions, the introduction of standalone storage ITC, further clean energy requirements, and direct pay provisions for the ITC. The White House has emphasized how critical such policies are for reaching President Biden’s climate targets.

 

1 Wood Mackenzie / SEIA Q3 2021 U.S. Solar Market Insight®. The Q3 2021 report provides data through Q2 2021.

 

 

close

US Solar Fund

IMPORTANT NOTICE:  Due to restrictions under applicable securities laws, access to this website is not permitted in certain jurisdictions. 

The information contained in this website does not constitute an offer to sell, or the solicitation of an offer to acquire or subscribe for, any securities of US Solar Fund plc in any jurisdiction in which, or to any person to whom, such offer or solicitation would be unlawful.

IMPORTANT NOTICE:  Due to restrictions under applicable securities laws, access to this website is not permitted in certain jurisdictions. 

The information contained in this website does not constitute an offer to sell, or the solicitation of an offer to acquire or subscribe for, any securities of US Solar Fund plc in any jurisdiction in which, or to any person to whom, such offer or solicitation would be unlawful.

Terms of use

THIS WEBSITE IS NOT INTENDED TO OFFER OR TO PROMOTE THE OFFER OR SALE OF THE SHARES (THE "SHARES") OF US SOLAR FUND PLC (THE "COMPANY") IN THE UNITED STATES OR TO ANY "U.S. PERSONS" AS DEFINED IN REGULATION S ("US PERSONS") UNDER THE US SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT").

THE MATERIALS CONTAINED HEREIN ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, TO US PERSONS OR INTO OR WITHIN THE UNITED STATES, AUSTRALIA, CANADA, SOUTH AFRICA, NEW ZEALAND, JAPAN OR IN ANY OTHER JURISDICTION, OR TO ANY OTHER PERSON, WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF APPLICABLE LAW OR REGULATION.

The information contained herein and on the pages that follow does not constitute or form a part of any offer to sell, or the solicitation of any offer to purchase or otherwise acquire, any securities in the United States or in any jurisdiction in which such an offer or solicitation would be unlawful. The Company has not been and will not be registered under the United States Investment Company Act of 1940, as amended (the "Investment Company Act") and, as such, holders of the shares of the Shares will not be entitled to the benefits of the Investment Company Act. The Shares have not been and will not be registered under the Securities Act, or with any securities regulatory authority of any state or other jurisdiction of the United States, and may not be offered, sold, resold, pledged, transferred or delivered, directly or indirectly, into or within the United States or to, or for the account or benefit of, any US Persons, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States and in a manner which would not require the Company to register under the Investment Company Act. There has been and will be no public offer of the Shares in the United States. The offer and sale of the Shares have not been and will not be registered under the applicable securities laws of Australia, Canada, South Africa, New Zealand or Japan. Potential users of the information contained herein and on the pages that follow are requested to inform themselves about and to observe any applicable restrictions.

The information contained herein and on the pages that follow may contain forward-looking statements. Any statement other than a statement of historical fact is a forward-looking statement. Actual results may differ materially from those expressed or implied by any forward-looking statement. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. You should not place undue reliance on any forward-looking statement, which speaks only as of the date of its issuance.

The Company may change these terms and conditions from time to time and any such changes will be posted on this website. Your access to this website is governed by the version of these terms and conditions then in force.

By clicking "I understand and agree" below, you represent, warrant and agree that you (1) have read, understood and agree to be bound by the terms and conditions and other information set out above, (2) are permitted under applicable laws and regulations to receive the information contained herein and on the pages that follow, and (3) agree that you will not transmit or otherwise send any information contained in this website to any persons in the United States or who are US Persons or to any publications with a general circulation in the United States. If you cannot so represent, warrant and agree, you must click the button labelled "I decline" or otherwise exit this website.