Rotterdam – the Netherlands
The US is seen to add over 20 GW direct current (DC) of utility-scale solar and more than 5 GW of energy storage capacity in 2021, IHS Markit said Monday.
The country installed 22 GW of solar photovoltaic (PV) capacity in 2020, its best year so far, of which 77% came from the utility-scale segment. According to IHS Markit’s calculations, the utility-scale segment already has 11 GW of capacity under construction.
Solar growth this year is driven by the new administration, the extension of the investment tax credit (ITC), competitive pricing and the massive late-stage project pipeline. The extension of the ITC is also expected to improve solar-plus-storage system economics and allow battery storage projects co-located with solar parks to enjoy a reduced tax burden through 2025.
IHS Markit expects solar capacity growth to be maintained over the next five years also thanks to corporate deals for green power and the aggressive net zero goals set by some large utilities.