The sky’s the limit for the North American solar market. According to Greentech Media (GTM) research, the U.S. installed 6,201 MW of solar PV in 2014, up 30 percent over 2013, making 2014 the largest year ever in terms of PV installations. In the last year, the residential and utility-scale PV sectors were responsible for a significant boost in U.S. solar capacity. For the first time ever, more than half of residential solar installations came online without state incentives. The utility-scale PV sector installed 1.5 GW in Q4, the largest quarterly total ever for any market segment. In Mexico, distributed solar projects capitalized on the country’s renewable energy goals and ample sunshine. Canada’s solar industry continued to grow steadily with a strong industry base in Ontario. It’s clear the North American market is a leader in global solar growth. Understanding the new policies, technologies, financing models and employment opportunities responsible for this growth is essential for industry professionals to maintain rapid deployment rates.

 

Supporting the North American market with solar jobs

 

The growth of installed PV capacity in North America is reflected in the tremendous growth of solar jobs. In 2014, the U.S. solar industry alone accounted for nearly 174,000 jobs according to a recent report from the Solar Foundation. The number of solar jobs has increased 86 percent over the last five years at a rate almost 20 times the job growth in the overall economy. California, the heart of the U.S. solar industry, accounts for one-third of the solar jobs available in the U.S. today and approximately 7,500 of the new solar jobs added in 2014. The California Solar Energy Industries Association (CALSEIA), reported that California employs more solar workers than the state’s five largest utilities put together (Pacific Gas and Electric Company, Southern California Edison, Los Angeles Department of Water and Power, San Diego Gas & Electric, and Sacramento Municipal Utility District) making California the epicenter of the solar industry in the U.S.

 

To secure a job in the North American solar industry, interested professionals must meet specific educational requirements and obtain industry certifications. For example, organizations like the North American Board of Certified Energy Practitioners (NABCEP), the most widely recognized certification provider in the U.S., offer standard training courses teaching best practices in solar installation. Continuing education (CE) credits can be earned through industry workshops and technical product trainings hosted by companies working in co-operation with NABCEP.

 

Financing models, tax credits, and policies impacting North America 

 

The investment tax credit (ITC) is a core supportive solar policy in the U.S. However the tax credit, which is equal to 30 percent of project costs, is set to expire in 2016. After 2016, the credit will be reduced to 10 percent for commercial projects and eliminated for residential projects. Recently, efforts have been made to extend the incentive. For example, this past February, President Obama unveiled the fiscal year budget proposal, which included a permanent extension of the ITC. While it’s unlikely the Senate and House will approve the budget, there remains hope for the ITC’s preservation. 

 

New policies that support the solar market continue to make an impact, even as older incentives expire or run out. California is streamlining the permitting process for residential rooftop systems 10kW or smaller with the implementation of assembly bill 2188. Net metering policies in 44 U.S states are also driving demand in rooftop solar PV. In addition to these supportive policies, innovation in financing is driving tremendous growth in the U.S. solar market. The rise of securitization and yieldcos unlocked a number of previously infeasible projects. 

 

Energy storage innovation and California's ambitious procurement goals

 

Energy storage is a growing market, set for rapid expansion within the next five years. The global market for energy storage, paired with solar PV will reach nearly $30 billion by 2017, accounting for approximately 10 percent of total PV system revenues, according to IHS Research. 

 

California is the hub for energy storage innovation and progressive policies in North America. Its example is spurring storage integration worldwide. The state’s ambitious storage procurement target requires 1,325 MW of storage to be connected to the grid by 2020. To date, the California Small Generation Incentive Program (SGIP) has facilitated the deployment of several megawatts of solar-plus-storage projects. Hawaii, New Jersey, Connecticut, and New York are also first-movers in this market. Demand for off-grid solutions in these regions has lead to the development of incentive programs for behind-the-meter solutions as well. 

 

 

Aligning stakeholders for a bright future

 

The North American solar market is incredibly dynamic—each day new innovations, policies, and products drive increased solar adoption across the U.S. To maintain market progress, professionals need to continue to seek out like-minded experts for insights and business partnerships. Events are a critical connection point for professionals to hear about innovation, get connected, and devise new strategies to increase the share of solar power in the global energy supply. By bringing together solar and energy storage decision makers across the supply chain, industry events can offer insider perspective on local market conditions and innovations shaping the global solar industry.

 

 

Markus Elsässer is the founder and CEO of Solar Promotion International GmbH, the organizer of Intersolar, an exhibition series for the solar industry and its partners. With five exhibitions spanning four continents, Intersolar unites people and companies from around the world with the aim of increasing the share of solar power in our energy supply. Intersolar North America, is a solar industry event with exhibitors and conference sessions highlighting latest innovation in the fields of PV, energy storage, financing, solar heating/cooling and more.

 

Intersolar North America | www.intersolar.us