Hyderabad, Jan. 25, 2023 (GLOBE NEWSWIRE) -- The demand for the Solar PV market is witnessing massive growth in North America primarily due to the rising demand across the private and public sectors for clean electricity, backed by strong government policies and regulations and the falling cost of electricity generated from solar energy. For example, to encourage solar adoption, the federal government in the United States introduced the federal solar tax credit for residential and commercial systems, which allows a deduction of 30% of the cost of installing a solar energy system from federal taxes until 2033. Further, the cost of solar PV installed has recorded a decline of more than 60% over the last decade, leading the industry to increase the adoption of solar and accelerate the transition to renewable energy. This trend will continue at a CAGR of more than 15% from 2022-2027.
In 2021, the United States was the largest solar market in North America, with a cumulative installed capacity of nearly 120 GW, and accounted for more than 90% of the North America Solar PV market. The Utility and residential sector constitute the largest solar PV markets. However, the commercial and industrial segments are expected to emerge as ample opportunities, predicts Mordor Intelligence.
According to the Solar Energy Industries Association, in 2021, around 46% of all new electric capacity added to the U.S. grid came from solar, which is the largest record in the history of the country. Also, solar has ranked first in new electric capacity additions in the last nine years. The rising competitiveness of solar PV against other renewable power technologies has pushed it to rapidly increase its share of total U.S. power generation from just 0.1% in 2010 to over 4% in 2021.
Along with the growing trends of solar PV deployment in the electricity generation mix, major companies in North America are looking to expand their PV module production capabilities in the region. For example, in August 2022, First Solar announced investing up to USD 1.2 billion to scale up the production of US-made solar modules. The investments aim to expand the company’s ability to produce modules for the US solar market to more than 10 GW (DC) by 2025. Similarly, in May 2022, Solarever, a Mexican solar module manufacturer, announced plans to increase its production capacity from 500 MW to 1 GW at its factory in Tecomán, southwestern Mexico. This allows the company to strengthen its presence in the North American solar PV market.
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Mordor Intelligence is a market intelligence and advisory firm. At Mordor Intelligence, we believe in predicting butterfly effects that have the potential to change or significantly impact market dynamics. Get a glance at North America Solar Photovoltaic (PV) Market Report or ask for a more customized report.
