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1033644

US Utility Solar PV Market Update: Q3 2021

Published: | Wood Mackenzie - Power & Renewables | Delivery time: 1-2 business days

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US Utility Solar PV Market Update: Q3 2021
Published: October 21, 2021
Wood Mackenzie - Power & Renewables
Delivery time: 1-2 business days
  • Description

Each quarter, Wood Mackenzie's team of US solar analysts highlights trends in US utility solar market dynamics, including the utility PV project pipeline, procurement trends, project developer rankings and landscape, policy and demand drivers across all 50 states, recent RFPs and PPA price trends and regional and state breakdowns. The analysis also includes a five-year forecast of utility solar.

The US utility-scale solar market saw another impressive quarter of growth, as almost 3.7GW of solar came online in Q2 2021 and an expected 132 GW will be added between 2021 and 2026. The Wood Mackenzie forecast suggests growth despite high commodity prices and supply chain uncertainty.

Key findings this quarter include:

  • The utility-scale solar sector will see double-digit annual growth through 2023 as developers build out pipelines they accrued at the 26% ITC level.
  • Even as the ITC steps down to 10% by 2024, the utility-scale solar sector will remain at least a 20 GW annual market between 2024 and 2026, thanks to the growing demand for clean energy and the decreasing cost of solar.
  • High component costs and supply chain challenges create headwinds for projects slated to come online in 2022 and early 2023. Additionally, constraints on tax equity and EPC capacity may affect smaller-size projects, while interconnection constraints affect projects of all sizes.