In a sluggish US economy, solar is king

Retail and real estate markets in the US might still be sluggish, but the solar energy industry is one of the fastest-growing sectors around.

The total capacity of grid-connected solar-electric installations now exceed 2.85 gigawatts (GW), enough to power nearly 600,000 US homes, according to the Solar Energy Industries Association (SEIA).

During the first quarter of 2011, the US installed 252 megawatts (MW) of grid-connected photovoltaics (PV) … a 66 percent year-over-year growth over installations during the same quarter in 2010. Two major factors drove this growth, according to the SEIA: falling solar energy equipment costs and a rush to take advantage of a federal incentive program for renewables that was expected to expire in 2010 (the program was eventually extended through the end of 2011).

All three PV market sectors (residential, commercial and utility) continued to grow, with commercial installations showing the strongest gains.

Domestic production of photovoltaic modules in the US also increased during the first quarter of 2011, to 348 megawatts, up 31 percent over the first quarter of 2010.

With analysts predicting the US to become the world’s largest solar market within the next few years, manufacturers are increasingly looking to the US to site their facilities,” said Tom Kimbis, vice president of strategy and external affairs for the SEIA. “They are finding significant value in manufacturing close to their expected source of demand. This strong demand continues to make solar one of the fastest growing industries in the United States and a source of thousands of good jobs from manufacturing and installation to engineering and sales.”