US demand for solar to reach record levels

U.S. solar energy industry is set for very bright future. The latest Solarbuzz report predicts that the demand for solar panels in United States in 2013 will grow by more than 20% than compared to 2012, reaching a record high of 4.3 gigawatts (GW).

The second quarter of 2013 should account for 1 GW, with almost three quarters of new installations coming from four states: California, Arizona, New Jersey, and North Carolina.

The majority of new solar installations refers to  the utility-dominated ground-mount segment that should account for 68% this quarter with  residential and small commercial rooftop solar panel installations accounting for 18% and the remaining 14% referring to large commercial rooftops.

Solarbuzz predicts that large solar energy projects in top solar energy markets such as Arizona, California, New Mexico, and Texas will push US demand above 2.5 GW during the second half of 2013.

The demand for solar panels on US market should exceed 5 GW in 2014, representing a staggering 70% compound annual growth rate since 2009.

The strong demand for solar energy is driven by favorable incentives and specific mandates deployed in many of U.S. states. The main reason why solar energy is today the fastest industry in the nation is because of the mix of federal incentives and aggressive renewable portfolio standards.

There have been some fears that this strong surge in demand could lead to over-supply that would threaten the new solar PV investments and thus hinder the future solar energy growth in United States. So far, everything is well for US solar though US solar energy market still remains heavily dependent on strong PV demand from a small group of states that lead the way.