Solar shines the brightest among energy sources, eyes more growth
Solar was the fastest-growing sector of the U.S. energy industry in 2020, and is poised for more growth as the Biden administration aims for net-zero carbon emissions by 2050.
A record 19.2 gigawatts of solar generation were installed nationally last year, the equivalent of 43 percent of the new power plants in 2020, according to a report published Tuesday by
Wood Mackenzie and commissioned by trade group Solar Energy Industries Association. The U.k.-based energy research firm forecasts that the U.S. solar industry will install 324 gigawatts of new solar farms over the next decade, more than quadrupling the current solar fleet. One gigawatt can power at least 300,000 homes, according to estimates.
“The recent two-year extension of the investment tax credit will drive greater solar adoption through 2025,” said Michelle Davis,
Wood Mackenzie’s senior energy analyst. The market’s economic conditions and increasing efforts to reduce carbon emissions could boost the installation rate to over 50 gigawatts per year by the end of the decade, she added.
The solar industry is booming as the price of cells that convert light to energy has fallen and government tax incentives have made the technology more costeffective in recent years.
Rystad expects the U.S. will need about 1,000 gigawatts of new solar and 600 gigawatts of new wind capacity to meet Biden’s climate goals. This could put at risk more than 56 billion cubic feet per day of future natural gas demand, the Norwegian energy research firm said.
Wind power represented 38 percent and natural gas 18 percent of new power generation last year, according to Wood Mackenzie.
Some large oil companies are investing heavily in solar to prepare for a lowercarbon future. French oil giant Total is developing 16 solar farms in the U.S., including three in West Texas, one in central Texas, one in south Texas and four in the Houston area. Total’s solar projects, which will generate nearly 4 gigawatts of solar power, are expected to come online by 2024.
“The scene is set for gigawatt-scale solar photovoltaic projects to be launched,” said Felix Tan, senior energy analyst at Rystad. “We expect more gigawatt-scale solar PV projects to follow, including hybrid developments.”
Texas saw the second highest number of new solar installations last year, according to Wood Mackenzie. Installed solar capacity in Texas now produces about 6,750 megawatts of power, enough for 783,663 homes. The state added 3,425 megawatts of solar in 2020, the Solar Energy Industries Association said.
Nationally, the installation of residential solar panels increased 11 percent to a record 3.1 gigawatts. Nearly 14 gigawatts of utility-scale solar farms went online nationally.
The U.S. solar industry, however, faces several challenges as it tries to expand in the coming years, including meeting battery storage demands and installation of transmission lines, Rystad said.
Solar farms also require vast amounts of land. Rystad estimates that the industry will need 13,412 square miles of land, about 20 times the size of Houston, to install enough solar panels to meet Biden’s net-zero target.
“Although building all these solar farms is no easy task, with the right choice of unoccupied land and with sufficient investments in infrastructure, it can be done,” Tan said. “Not every state is a good fit for largescale solar plants, but certain southern states could take on larger gigawattsscale projects than others.”