US solar industry to grow in next 5 years

28th Nov 2011

The solar power industry in the US is projected to rise annually by more than 11 per cent, according to new predictions.

Industry researchers IBISworld have estimated that the US solar market will reach $145.9 million by the year 2016 – with the average annual growth to be reported at 11.4 per cent.

The predicted rise is contributed to rising demand and supportive government legislation, as well as an increase in the production of solar panels.

According to the research, prices will continue to fall as more solar options enter the market in the next five years, consequently driving up consumer and business investment.

US government initiatives have stimulated the industry over the past five years by providing tax credits for companies that invest in solar power, as well as enforcing renewable portfolio standards which require the participating states to generate a certain percentage of their total energy from renewable resources.

IBISworld predictions for growth after 2016 rely heavily on the government in power, with a change potentially slowing the success of solar.

The research highlights that major companies focusing on large scale solar projects have benefited from renewable energy legislation.

One such business named in the research is Spanish entity Abengoa Solar – the chief operating officer of which is set to speak to Australian audiences this week.

Scott Frier – chief executive of the solar firm – will be providing an international perspective on the future of solar energy in Australia when he attends the Solar 2011 Conference in Sydney.

Present in Australia since last year, Abengoa Solar is currently overseeing a 280 megawatt concentrating solar power (CSP) in California – the 16th of its kind built by the solar company.

Dubbed the Mojave Solar Project, it is expected to generate enough electricity to power approximately 54,000 households when it comes online in 2014.

Abengoa is currently building 1,010 megawatts of solar plants worldwide, with an additional 393 megawatt already in operation.

CEO of the Australian Solar Energy Society (AuSES) John Grimes said the investment in solar energy being made by companies such as Abengoa in utility-scale projects demonstrated the real potential of solar energy.

"The international experience of companies such as Abengoa offers a great insight into the potential for the future development of solar energy in Australia, including the creation of thousands of new jobs in the renewable energy sector," Mr Grimes said in a statement.

Posted by Mike Peacock – Solar correspondent

All solar power news categories

Government Rebate & Regulations
Solar Power & Technology


More Solar Power & Technology

Australia to be a part of huge Asian renewable energy growth
SunPower steps up to make solar more affordable
Canberra makes strides toward carbon neutrality
GTM puts solar's massive growth in perspective
Examining Australia's falling solar PV rooftop prices
Australia's shift toward renewable energy picks up the pace
Australia shines at solar decathlon
University of Queensland tapped as lead researcher on massive solar project
100 per cent renewable energy is possible in 10 years, environmental group says
Climate Commission releases report on solar progress
Aussie government actually shows spine for solar power
Be gone, skeptics: One million solar installations and counting
Australia embarks on its greatest solar journey ever
Australia looks to solar thermal for commercial success
Solar power helps King Island reach 100% sustainability
Australians 'heavy supporters of solar power'
Mildura solar plant officially unveiled
Solar power trumps other renewables in Australian minds
Sunshine Coast solar farm "fantastic initiative"
Sunshine Coast cashes in on namesake with solar plans
Energy storage 'could maximise solar power utility'
Solar powered family car - a world first?
Code of conduct for solar installers in the works
'Stop punishing households' for solar PV
Australian solar companies 'adjusting well'
Australian mining 'next solar frontier'
"Rooftop revolution" underway across Australia
Global PV market emerging from sluggish period
Royalla solar farm receives final approval
Leadership challenge a "debacle" for Australian solar power
Solar power giving global renewables a helping hand
Australia's largest CPV solar power plant up and running
Renewable energy misinformation "staggering"
CEC: Don't underestimate consumer desire for solar
Setting energy efficient examples on TV
Solar PV brightening up household bills
World's largest solar powered boat on the move
Climate change is heating up
The global solar power shift
New solar tech win for NSW
Industry orgs praise City of Sydney solar efforts
Clean Energy Council supports Regional Renewables scheme
Asian nations emerging as PV leaders
Solar PV demand continues to grow
Regional areas of Australia to receive more renewables
Australia's significant renewable energy growth
Solar panel reprieve for Queensland
New funding for solar research
Find love with sustainable speed dating
New Victorian solar power deal
 To get your quotes, please enter your postcode: