Solar dominated US generation capacity additions in H1, says Wood Mackenzie

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From pv magazine USA

The Solar Energy Industries Association (SEIA) and Wood Mackenzie have released a solar market insight report with new data from the first half of 2023. They have found that US solar developers installed 5.6 GW in the second quarter of 2023, up 20% from the second quarter of 2022. The US market also added nearly 12 GW in the first six months of the year.

In the second quarter of 2023, residential solar installations hit a record high of 1.8 GW, driven by Californians eager to lock in favorable export compensation rates during the transition from NEM 2.0 to NEM 3.0 in April. Wood Mackenzie says it expects this installation surge to persist into the third quarter, before gradually declining in the fourth quarter.

Commercial solar developers added 345 MW in the second quarter, down 9% year on year. However, the total number of installed projects increased by 7%, which points to relatively stable volumes for the segment, according to Wood Mackenzie. 

The community solar segment added 226 MW in the second quarter of 2023, with no growth from the preceding quarter and marking a 16% decline from the second quarter of 2022. The report notes that while there is momentum in the sector, growth is hampered by challenges related to interconnection, market penetration, siting, and permitting.

Utility-scale solar developers led in terms of capacity additions, with 3.3 GW in the second quarter of 2023, up 22% year on year. The segment has rebounded this year from supply chain constraints that caused project delays and cancellations. Wood Mackenzie predicts a total of 172 GW (DC) in new utility-scale installations between 2023 and 2028. Across all sectors, it says that it anticipates 52% year-on-year growth in installations, from a 13% decline in 2022.

Image: SEIA / Wood Mackenzie

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