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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Leading yard operation 3PL YMX Logistics has announced plans to deploy fully twenty (20) of Orange EV’s fully electric Class 8 terminal trucks at a number of distribution and manufacturing sites across North America.
As the shipping and logistics industries increasingly move to embrace electrification, yard operations have proven to be an almost ideal use case for EVs, enabling companies like Orange EV, which specialize in yard hostlers or terminal tractors, to drive real, impactful change. To that end, companies like YMX are partnering with Orange EV.
“This relationship between YMX and Orange EV is a significant step forward in transforming yard operations across North America,” said Matt Yearling, CEO of YMX Logistics. “Besides the initial benefits of reduction in emissions and carbon footprint, our customers are also seeing improvements in the overall operational efficiency and seeking to expand. Our team members have also been sharing positive feedback about their new equipment and highlighting the positive impact on their health and day-to-day activities.”
This Orange looks good in blue
One of the most interesting aspects of this story – beyond the Orange EV HUSK-e XP’s almost unbelievable 180,000 lb. GCWR spec. – is that this isn’t a story about California’s ports, which mandate EVs. Instead, YMX is truly deploying these trucks throughout the country, with at least four currently in Chicago (and more on the way).
“Our collaboration with YMX Logistics represents a powerful stride in delivering sustainable yard solutions at scale for enterprise customers,” explains Wayne Mathisen, CEO of Orange EV. “With rising demand for electric yard trucks, our joint efforts ensure that more companies can access the environmental, financial, and operational benefits of electrification … this is a win for the planet, the workforce, and the bottom line of these organizations.”
We interviewed Orange EV founder Kurt Neutgens on The Heavy Equipment Podcast a few months back, but if you’re not familiar with these purpose-built trucks, it’s worth a listen.
HEP-isode 26
SOURCE | IMAGES: YMX Logistics.
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On today’s thrilling episode of Quick Charge, we’ve got the all-new Hyundai IONIQ 9 and its “a “rolling living room” pivoting captain’s chairs, Kia gets a go-fast 7 passenger SUV and an updated EV6, while Honda announces plans to start producing solid-state batteries at its new facility in just a few weeks.
We’ve also got big news for American workers – a Minnesota power company is ditching coal for solar while ExxonMobil and LG Chem get to work extracting thousands of tons of lithium out of Tennessee’s soil.
Today’s episode is sponsored by BLUETTI, a leading provider of portable power stations, solar generators, and energy storage systems. For a limited time, save up to 52% during BLUETTI’s exclusive Black Friday sale, now through November 28, and be sure to use promo code BLUETTI5OFF for 5% off all power stations sitewide. Learn more by clicking here.
You can watch the episode, below.
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Read more: Farm-fegnugen? Volkswagen rolls out an electric tractor.
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Arevon Energy has kicked off operations at Vikings Solar-plus-Storage – one of the US’s first utility-scale solar peaker plants.
The $529 million project in Imperial County, California, near Holtville, features 157 megawatts of solar power paired with 150 megawatts/600 megawatt hours of battery storage.
Vikings Solar-plus-Storage is designed to take cheap daytime solar power and store it for use during more expensive peak demand times, like late afternoons and evenings. The battery storage system can quickly respond to changes in demand, helping tackle critical grid needs.
Vikings leverages provisions in the Inflation Reduction Act that support affordable clean energy, strengthen grid resilience, boost US manufacturing, and create good jobs.
The Vikings project has already brought significant benefits to the local area. It employed over 170 people during construction, many local workers, and boosted nearby businesses like restaurants, hotels, and stores. On top of that, Vikings will pay out more than $17 million to local governments over its lifespan.
“Vikings’ advanced design sets the standard for safe and reliable solar-plus-storage configurations,” said Arevon CEO Kevin Smith. “The project incorporates solar panels, trackers, and batteries that showcase the growing strength of US renewable energy manufacturing.”
The project includes Tesla Megapack battery systems made in California, First Solar’s thin-film solar panels, and smart solar trackers from Nextracker. San Diego-based SOLV Energy handled the engineering, procurement, and construction work.
San Diego Community Power (SDCP) will buy the energy from the Vikings project under a long-term deal, helping power nearly 1 million customer accounts. SDCP and Arevon have also signed an agreement for the 200 MW Avocet Energy Storage Project in Carson, California, which will start construction in early 2025.
Vikings is named after the Holtville High School mascot, and Arevon is giving back to the local community by funding scholarships for deserving Holtville High students.
Arevon is a major renewable energy developer across the US and a key player in California, with nearly 2,500 MW in operation and more than 1,250 MW under construction.
Read more: Minnesota’s largest coal plant goes solar: Sherco Solar comes online
If you live in an area that has frequent natural disaster events, and are interested in making your home more resilient to power outages, consider going solar and adding a battery storage system. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.
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