US solar market sees Q3 2016 as largest quarter with 4,143 MW of PV installed

Breaking all previous quarterly solar photovoltaic (PV) installation records, the US solar market registered a total of 4,143 megawatts (MW) of solar PV installations in the third quarter of the year. This translates to a rate of 1 MW every 32 minutes, according to GTM Research and the Solar Energy Industries Association’s (SEIA) Q4 2016 US Solar Market Insight report. The fourth quarter is expected to even surpass that number.

“The solar market now enjoys an economically-winning hand that pays off both financially and environmentally, and American taxpayers have noticed. With a 90% favorability rating and 209,000 plus jobs, the US solar industry has proven that when you combine smart policies with smart 21st century technology, consumers and businesses both benefit,” said Tom Kimbis, SEIA’s interim president.

The report points to an “unprecedented rate of project completion” in the utility-scale segment as a key growth driver. In fact, the utility-scale segment represented 77% of solar PV installed in the third quarter of the year. GTM Research anticipates that a massive 4.8 gigawatts (GW) of utility PV projects will come on-line in the fourth quarter of the year – that’s more than was installed across the entire utility PV segment in all of 2015.

“Driven by a large pipeline of utility PV projects initially procured under the assumption of a 2016 federal ITC expiration, the third quarter of 2016 represents the first phase of this massive wave of project completion – a trend that will continue well into the first half of 2017,” said Cory Honeyman, associate director of US solar at GTM Research.

The non-residential segment posted its second largest quarter ever. With 375 MW installed, the segment grew 15% over the second quarter of the year and 37% annually. Part of this growth is attributed to a community solar pipeline that is finally beginning to materialize, a segment that accounted for a record 20% of the non-residential PV market in Q3 2016.

This past quarter marks the sixth consecutive quarter in which more than a half GW of residential PV was installed; however, the segment is experiencing a slowdown from its peak growth quarters. The residential PV segment grew just 2% year-over-year and actually fell 10% from last quarter’s total. The report cites changes in the sales cycles in mature state markets, like California, and challenges posed by rate design reform, such as the elimination of net metering in Nevada, as reasons for the shift.

A mere three years ago, the US eclipsed 10 cumulative GW of PV installed.  By the end of 2016, GTM Research forecasts the US to install 14.1 GW this year alone, up 88% over 2015’s total.

With 1,000 member companies in the country, SEIA is the national trade association of the US solar energy industry. GTM Research, a division of Greentech Media, provides critical and timely market analysis in the form of research reports, data services, advisory services and strategic consulting.