Utilities and large energy consumers are installing large-scale commercial – and utility-scale – solar systems faster than ever.

As a result, PV solar is now the fastest growing energy sector in the US, providing more than 3,300 MW of capacity (SEIA).

As a whole, the US PV industry added 449MW in 3Q 2011 alone

• That number is up 39% over Q2 2011
• Up 140% over Q3 2010
• Q4 2011 is expected to produce even larger gains

Courtesty of GTM Research

Commercial Scale PV Solar 101

• 2 types – Small (up to 250 KW) and Large (250 KW-2 MW)
• Typically installed on commercial rooftops, over parking structures or on available land on or adjacent to the client’s site
• PPA relationships between site owners and third party system owners create a win-win
• In a PPA (Power Purchase Agreement) site owners buy power directly from the third party system owner at a rate lower than the rate available from the local utility.

#1 – BOS (Balance of System) costs are more important than ever

• Module prices down more than 40% in 2011
• BOS costs outweigh module costs for the first time in history
• Whoever can drive the cost out of BOS – inverters, wires, labor, mounting systems, etc. – wins

#2 – Innovation in technology and storage is going to be a big game changer

• Any innovation that a) drives down cost or reduces waste of energy (e.g. storage, AC to DC conversion, etc.) and b) is scalable is desperately needed
• The future of the industry – once RPS have been met and federal incentives dry up – depends on this

#3 – State RPS programs are key for emerging markets

• Top 5 US states/markets have already peaked
• 29 states have RPS in place
• Most have a Solar/DG set aside
• If there is no RPS – or discussion of an RPS – there is no solar market in that state

#4 – 2016 is a possible “D-Day” for the industry

• Industry shifting to tax equity funded projects with the sunset of 1603 Treasury Cash Grant
• Limited tax equity could drive up the costs to finance a solar project
• Projects that received the 1603 cash grant must be online by 12/21/2014
• Sunset of 1603 Cash Grant led to record Q4 2011 for installations
• Federal tax credits (ITC) are slated to expire 12/31/2016
• What will happen 1/1/2017?

#5 – The market is ALREADY saturated

• There is great growth potential in the lg. commercial/utility markets in the U.S.
• And EVERYBODY knows about it
• European companies are already in the game: Juwi Solar, Acciona, Phoenix Solar etc,
• Asian companies are flocking as well
• These companies are bankable and experienced. Asian firms have lightning fast turnaround for bringing products to market and deep pockets to invest in US projects: Hyundai, LG, Samsung, Honda
• If you want in, you better bring product reliability and innovation – or stay home