Solar Activity Was At Record-High Level In USA In 2020
One decade ago, I was writing about the rapid growth of solar power in the United States and the exciting forecast for much more solar growth in the country. The past couple of years have again brought record solar installations in the United States, and record solar activity more broadly. Of course, this is driven in large part by record-low solar prices, but not only.
Chart by U.S. Energy Information Administration, Annual Solar Photovoltaic Module Shipments Report.
What’s Driving US Solar Power Growth?
Money, money, money — it’s hard to say that most of this growth doesn’t come down to continuous solar panel cost drops over the past decade, which as I reported last year led to an average rooftop solar power price of $2.19/watt across the USA and a Tesla rooftop solar power price of $1.49/watt across the country. Both prices are the price after the US solar tax credit, aka Investment Tax Credit (ITC), takes 26% off the consumer cost.
Related, the federal solar tax credit was on the verge of dropping from 26% of the cost of a solar power system to 22% after 2020, but it was extended at the end of the year. A desire to get the 26% credit before it was cut to 22% surely led to a solar power rush throughout the year. It turns out the tax credit was extended at the end of the year, but that doesn’t mean the systems installed due to the potential expiration are any less real.
How Much Did US Solar Power Grow In 2020?
As noted above, the big-picture view is of solar activity — or solar PV module shipments — which includes solar panel (aka solar module) imports, solar panel exports, solar panels produced, and solar panels sold domestically. (I know, it seems like a somewhat weird accumulation of different activities.) They rose to 21.8 million peak kilowatts (kW) of solar power capacity in 2020, by far their best ever. In fact, that was 5.4 million peak kW above 2019’s total, their previous best.
The U.S. Energy Information Administration adds that the COVID-19 crisis may have given rooftop solar a boost, too. “Demand for residential solar installations increased in 2020 in part because people were spending more time at home, which in turn resulted in an increased interest in home improvement.”
Though, the growth wasn’t all about rooftop solar. In fact, utility-scale solar saw an even bigger growth spurt than rooftop solar. Utility-scale solar PV installations (1 MW and above) rose by 29% in 2020, compared to 2019, whereas small-scale solar rose by 19%. The average of the two was 25% growth.
Graph by U.S. Energy Information Administration, Annual Solar Photovoltaic Module Shipments Report
Low solar power costs combined with growing awareness and greater increase in energy self-reliance have surely led to further solar power growth in 2021, but there likely won’t be a rush induced by changes to the tax incentives again until 2022, since the 26% credit extension went through 2022, dropping to 22% in 2023 (unless it gets extended again, but that seems unlikely).
“The average value (a proxy for price) of solar shipments decreased from $1.96 per peak watt in 2010 to $0.38 per peak watt in 2020,” the EIA writes, referencing the graph above. “Lower supply chain costs and an oversupply of modules because of increased production are largely responsible for the declines in the average value of solar PV modules over the past decade.”
And here are a few more stats from the EIA team, with lead writing by Lolita Jamison: “In 2020, 89% of U.S. solar PV module shipments were imports. PV module imports in 2020 totaled 19.3 million peak kilowatts (kW), an increase of 26% from the 15.3 million peak kW imported in 2019. Vietnam was the leading importer to the United States, followed by Malaysia, South Korea, and Thailand.”
As far as where in the US all of this solar power gets installed, as could be expected, the three most populated states in the nation — each of which have more than ample solar energy resources — stand out well above the crowd. Though, #4 Virginia shows an impressively large contribution, coming out of nowhere compared to previous years (it was #14 in 2018 and #19 in 2019). North Carolina, South Carolina, and New York round out the top 7, with the first and the last in that trio very familiar with top rankings, and the middle child improving on a very solid 2019 total. Here’s a short bullet-point summary for the top 10 in 2020 since the table below is a bit hard to read (all figures in MWdc):
- California — 3904
- Texas — 3425
- Florida — 2822
- Virginia — 1406
- North Carolina — 785
- South Carolina — 617
- New York — 544
- Arizona — 503
- Utah — 427
- New Jersey — 387
Table courtesy of U.S. Solar Energy Industries Association (SEIA) and Wood Mackenzie.
2021 and Beyond
What will 2021, 2022, and 2023 bring?
The U.S. Solar Energy Industries Association (SEIA) projects that 2021 will set an even significantly stronger solar power installation record, and then will grow a bit more gradually in 2022 and 2023 before dropping off for a few years in 2024, 2025, and 2026 due to the US solar tax credit reduction.
Chart courtesy of U.S. Solar Energy Industries Association (SEIA) and Wood Mackenzie.
The trends are expected to be approximately the same in both the small-scale (typically rooftop) solar PV market and the utility-scale solar PV market.
Chart courtesy of U.S. Solar Energy Industries Association (SEIA) and Wood Mackenzie.
Chart courtesy of U.S. Solar Energy Industries Association (SEIA) and Wood Mackenzie.
We shall see.
Is It Time To Go Solar?
This is always the question, and the answer is always “yes.” There are a variety of factors to consider and it’s a decision for each person, family, or business to look at closely themselves. However, year after year, it is typically the case that there’s a lot of money to be made, or saved, by going solar. If financing, the long-term savings often beat business-as-usual retail electricity purchasing. If considering a cash purchase, one can also take into account other investment opportunities and risk-reward levels. One way or another, though, going solar often makes financial sense. And when you take into account the climate catastrophe we’re facing, it’s just the right thing to do.
Considering going solar at a home or business? If so, I always recommend getting at least 3 quotes from solar installers (they’re always free), looking carefully at the terms and conditions, and consulting with someone who has already gone solar if you have the opportunity. If you end up deciding on going solar with Tesla, feel free to use my referral code — https://ts.la/zachary63404 — for a $100 discount (and a bit of a bonus for me, too). That works for either conventional solar panels or a Tesla Solar Roof (solar tiles).
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The Canadian home improvement chain picked up a pair of Volvo VNR Electric semi trucks, and it’s putting them to work on last-mile delivery routes in the Greater Toronto Area.
This month, the Canadian home improvement retailer Home Hardware began operating two Volvo electric semi trucks out of its St. Jacobs, Ontario truck depot. The pair of trucks will fulfill last-mile deliveries throughout the area, and mark the company’s first step towards transitioning its entire fleet to zero-emission vehicles.
The Volvo VNR trucks have an operating range of 442 km (about 275 miles). Their delivery routes will take them from Home-brand stores within a 100-150 km (about 90 miles) radius of the St. Jacobs distribution centre.
“We are proud to introduce our new battery-electric trucks to our privately-owned fleet,” said Kevin Macnab, president and chief executive officer, Home Hardware Stores Ltd. “Recognized by the Private Motor Truck Council as Safest Large Fleet, as well as Trucking HR Canada as a Top Fleet Employer and a Fleet of Distinction, Home Hardware Stores, Ltd. is committed to forward-thinking logistics that evolve our supply chain to best support our dealers so they can serve their communities.”
Home Hardware debuted their new Volvo VNR Electric trucks at the company’s 60th anniversary celebration and annual franchise event, the Home Hardware Homecoming, held last week in Toronto, Ontario, Canada.
Electrek’s Take
Home Hardware is the latest in a growing list of companies – and they’re already adding to the tally of tens of millions of all-electric, zero emission miles driven by Volvo customers. By the time Volvo rolls out its next-generation VNL and FH electric semis next year, it will be the company’s third generation of Class 8 EVs, and it will be backed by more than 100,000,000 miles of real-world data collected by thousands of trucks across dozens of companies.
Is that an insurmountable head start for companies like Tesla to make up? It’s hard to know (and my brain is broken, anyway), but I invite you to check out this episode of Quick Charge recorded a few weeks ago (below) talking about Volvo Truck’s lead, and then share your take on the state of the electric semi truck market in the comments.
Quick Charge
SOURCE | IMAGES: Volvo Trucks.
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The newest edition to the CAA-Quebec roadside fleet is a fully electric Lion5 flatbed – and the CAA says it’s the first 100% electrique tow truck in service in North America!
Based on the Lion5 medium-duty truck and upfit with a flat bed body developed by XpaK Industries, CAA-Quebec (think AAA, but in Quebec) is marking an important milestone in its 80-history with the deployment of the first electric tow truck in Canada.
“Roadside assistance has always been in CAA-Quebec’s DNA, and it goes without saying that we are taking the lead in electric towing. We have a responsibility to set an example and take a leadership role in protecting the environment,” said Marie-Soleil Tremblay, president and CEO.
As far as the truck itself goes, the Lion5 chassis is packed with 210 kWh of in-house, 800V battery packs. Those are good for a range of up to 310 km (a touch over 190 miles) courtesy of an energy-efficient, high-torque electric motor putting 315 hp that Lion Electric claims can eliminate between 75 and 100 metric tons of greenhouse gas per year compared to a comparable diesel truck.
What’s more, the Lion5-based tow truck promises to reduce CAA-Quebec’s energy (read: fuel) costs by about 80%, and regular maintenance costs by about 60% compared to gas or diesel vehicles in the same class.
“With this new 100% electric, made-in-Quebec tow truck, we are helping to redefine the future of the towing industry,” said Patrick Gervais, VP Trucks and Public Affairs at Lion. “We are proud to be part of a cleaner and more sustainable future with players like CAA-Quebec and XpaK.”
The Lion5 tow truck was delivered in July, and will spend a year being put through its paces in a multitude of towing situations and extreme weather conditions. CAA-Quebec’s roadside assistance service will share its experience with partners throughout Canada and the AAA in the US.
Electrek’s Take
“Electrek’s Take” is where we put our industry experience to use interpreting the news we report. Here, in an article about a “first ever” new commercial segment being entered by a highly visible EV, I probably should be talking about operating costs, “dollars and sense,” and the importance of stabilized costs for a fleet manager’s projections.
Instead, I’m just going to picture some bro-dude’s lifted 4×4 Ram pickup getting hauled out of a parking spot he’s ICE’d and giggle a bit. You try it, too, and let me know if it made you smile in the comments section.
SOURCE | IMAGES: Lion Electric, via TowCanada.
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Best known in the US as the OEM behind Nikola, Italian truck brand IVECO entered the 2.5 to 3.5 ton medium duty commercial van segment at this week’s IAA Transportation conference with this: the eMoovy electric chassis cab.
Co-developed with Hyundai and riding on a modified platform of the Korean brand’s Staria ST1 van, the IVECO eMoovy is entering a red-hot commercial EV space with a 215 hp electric motor and either a 63 kWh or 76 kWh battery good for up to 199 miles of range.
The IVECO version leverages the Hyundai’s excellent 800V architecture. That means the eMoovy supports ultra-fast 350 kW charging and V2x functionality, so it can be used to back up a job site, supply power to workers, or even power a home (presumably).
A long time coming
We’ve known than a commercialized IVECO version of the Hyundai van (which isn’t sold as an EV, that I’m aware of) has been in the works for some time. In fact, Peter Johnson wrote about the 2022 deal way back in February.
In that article, Peter wrote that, while Hyundai would develop and build the chassis, IVECO would customize the electric vans to suit broader commercial markets and distribute the vehicles throughout its network. If that sounds familiar, that’s because (on the surface, at least) the deal seems pretty similar to the one IVECO has with Nikola … which begs the question: will Nikola get an eMoovy variant to sell in the US?
The new electric van will directly target Ford E-Transit customers in Europe, so there’s no reason to believe it won’t be an attractive alternative for commercial fleets on this side of the pond, as well – especially with the “big rig” street cred that could come with the Nikola association.
Electrek’s Take
The commercial EV market is driven by dollars and cents. If EVs have a lower total cost of ownership (TCO) than their gas or diesel counterparts? They’ll continue to sell, and their market share will continue to grow. The only question Hyundai and IVECO need to answer is whether North American truck buyers be more likely to buy a Hyundai-branded van, or a Nikola one.
We asked a similar question to Kia’s James Bell on Quick Charge a few weeks back. Listen to his response to those questions, below, then share your thoughts in the comments section at the bottom of the page.
Kia’s James Bell on Electrek Quick Charge
SOURCE | IMAGES: IVECO, CarScoops.
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