Solar News - Frost & Sullivan: With Competitive Costs, Solar Power Emerges from the Shadow of Conventional Energy in the U.S.
Government incentives speed up installation of utility-scale solar power plants
Category: Investment, Renewable Energy
News about Frost & Sullivan
MOUNTAIN VIEW, Calif. - January 14, 2013 (Investorideas.com renewable energy newswire) The adoption of utility-scale photovoltaic (PV) and concentrating solar power (CSP) plants in the United States is expected to accelerate during the next decade. The presence of high solar irradiance, along with continuous pressure from the government to implement renewable energy technologies, fuels demand for solar projects. As solar energy competes with conventional forms of electricity generation, the potential market for utility-scale solar power plants in the country is on the rise.
New analysis from Frost & Sullivan's (http://www.energy.frost.com) Analysis of the U.S. Utility-scale Solar Power Market research finds that the market acquired investments of more than $1.91 billion in 2011 and estimates this to reach $20.44 billion in 2016.
If you are interested in more information on this research, please send an email to Britni Myers, Corporate Communications, at firstname.lastname@example.org, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.
Cumulative PV solar installations in the United States reached 1,855 megawatts (MW), with the utility-scale segment accounting for 32.2 percent. Lower solar module prices have led developers of utility-scale applications, such as the Blythe solar power project in California , to opt for PV technologies over CSP.
"Though no new CSP plants were installed in the United States during 2011, projects totaling more than 1.4 gigawatts were under construction," said Frost & Sullivan Senior Industry Analyst Georgina Benedetti. "These projects in the CSP segment are likely to speed up overall market growth."
Expediting solar installations are renewable portfolio standards (RPS), which mandate electricity supply companies to produce a specified fraction of their electricity from renewable energy sources. A few states require some portion of the RPS to come from solar resources.
Though this has led to higher adoption, investment figures have not gone up, as the average selling price of solar PV modules continues to decline.
Further, restrictions in project financing could limit investors, such as uncertainty around the extension of cash grants beyond March 1, 2013, as these are an investment tax credit substitute for developers. Since many solar project developers do not have tax liabilities large enough to efficiently capture the full amount of tax credits available, they have to rely on tax equity partners for finances.
"To be willing to fund these projects, banks and investors must be confident that a power plant will operate long enough to return their investment," explained Benedetti. "Therefore, well-established project developers using proven technologies will have an advantage in obtaining financing."
Federal incentives such as investment tax credits and loan programs will continue to promote large-scale commercialization of solar energy, and boost the setting up of solar plants in the United States .
Analysis of the U.S. Utility-scale Solar Power Market is part of the Energy & Power Growth Partnership Services program, which also includes: Analysis of the U.S. Residential Solar Power Market and Annual Global Power & Energy Outlook 2012. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
Connect with Frost & Sullivan on social media, including Twitter, Facebook, SlideShare, and LinkedIn, for the latest news and updates.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.
Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
Contact Us: Start the discussion
Join Us: Join our community
Subscribe: Newsletter on "the next big thing"
Register: Gain access to visionary innovation
Analysis of the U.S. Utility-scale Solar Power Market
Corporate Communications – North America
Facebook: Frost & Sullivan
This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. More disclaimer info: http://www.investorideas.com/About/Disclaimer.asp
Additional info regarding BC Residents and global Investors: Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: http://www.bcsc.bc.ca/release.aspx?id=6894. Global investors must adhere to regulations of each country.