The US Solar MarketThe US Solar Market › files › Resch.pdf• 14 state and regional chapters • Objectives •Expand Markets • Strengthen R&D • Remove Market Barriers •

The US Solar MarketThe US Solar Market

Rhone ReschPresidentPresident

Solar Energy Industries Association

www.seia.org

Introduction to SEIA

• National trade association for solar industry• 700 members include all solar technologies• Represent over +25,000 people employed by solar

• Headquarters in Washington, D.C.• 14 state and regional chapters

• Objectives• Expand Marketsp• Strengthen R&D• Remove Market Barriers• Improve Education and OutreachImprove Education and Outreach

• Members include manufacturers, distributors, installers end users financial and legal entities

www.seia.org

installers, end users, financial and legal entities

PV: Residential Retrofit - 6 kW

www.seia.org

PV: Moscone Center - SF CA - 675 kW

www.seia.orgSource: SunPower

Solar Water Heating

www.seia.org

CSP Dish System

www.seia.org

CSP – Trough System

www.seia.org

The Giant of Solar

Incentive $0.48-70 kWh Incentive $0.14-20 kWh

www.seia.orgSource: SEIA

Historic Growth in PV

Installations ROWMW

2500

InstallationsU.S.A.ROA

MW

1500

2000 ChinaIndiaJapan

Global CAGR: 46%

1000

1500 JapanROEGreece

500

GreeceFranceItaly

02000 2001 2002 2003 2004 2005 2006 2007

SpainGermany

www.seia.orgSource: PVNEWS

US Market Growth

MW

250

300 From 2005-2006:• Grid connected

up 55%• Total U S up

259

200

250 • Total U.S. up 32%

From 2006-2007:U.S. CAGR: 43%

100

150 • US Market up over 80%

50

100

Off Grid0

2000 2001 2002 2003 2004 2005 2006 2007( t )

Grid Tied

www.seia.org

(est.)Source: PVNews

Electricity Generation in the U.S.

63 96.2 0 51Solar is 1/8th of 1%

28163 0.51

Coal807.5 Nuclear

Natural GasHydro

1987

yPetroleumNon-solar RenewableSolar1987787Solar

In billion kilowatt hoursIn billion kilowatt hours

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Source: Energy Information Agency, Electric Power Monthly, released September 10, 2007

Why Solar? Why Now?

• Energy IndependenceEnergy Independence– Displaces natural gas

• Energy SecurityEnergy Security– Stabilizes grid by

reducing peak power demand

• Global Warming• Water Availability• Electricity Prices• US is Energy Hungry,

High Tech Society

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EPAct 2005

First Residential Tax Credit in 20 Years• 30% capped at $2,000% pp $ ,• Only 2 years

Expands CommercialExpands Commercial Credit• 30% no cap• 30%, no cap• Covers all equipment and

installation costsinstallation costs• Only 2 years

www.seia.org

Federal Energy Bill - 2007

• Extends and Expands EPAct 2005 Tax Creditsp– Commercial Credit

• Extended by 8 years• Provides AMT Relief• Provides AMT Relief• Removes the exemption on utilities

– Residential• Extended by 6 years• Provides AMT Relief• Removes the $2 000 cap• Removes the $2,000 cap

• Other Provisions– Extension of federal government PPA contract life

(H d S t 9086)(House and Senate sec 9086)– Strategic Solar Reserve Program (SEC. 7304)– Federal Solar Hot Water Requirement (SEC. 270A)

www.seia.org

Federal Solar Hot Water Requirement (SEC. 270A)

Global PV Demand Projections

ROWMW

6000

7000ROWU.S.A.ROAGlobal CAGR: 36.5%

4000

5000

6000 ROAChinaIndia

Global CAGR: 36.5%

3000

4000 IndiaJapanROE

1000

2000 GreeceFrance

0

000

2006 2007 2008 2009 2010

ItalySpain

www.seia.org

GermanySource: PVNEWS

US Market PV Demand Forecast

MW 1,590 MW

14001600

10001200

U.S. CAGR: 83%

600800

200400 Off Grid

Grid Tied0

200

2006 2007 2008 2009 2010

Grid Tied

www.seia.orgSource: PVNews

Obstacles

• Need Long-Term Federal• Need Long-Term Federal Incentives

• Nation-wide Interconnection andNation wide Interconnection and Net-Metering

• Solar Carve Outs in Renewable Portfolio Standards

www.seia.org

Solar Community - Japan

www.seia.org

Power and Shade - 1 MWWorld’s Largest PV Carport, US Navy

www.seia.org

BIPV - The Netherlands

www.seia.org

Solar Skylights, The Netherlands

Roofing Structures - Germanyg y

www.seia.org

FedEx - Oakland Hub, CA – 904 kW,

www.seia.orgSource: SunPower

J&J Skillman, NJ – 505 kW

www.seia.orgSource: SunPower

Bavaria Solar Park - 10 MW

www.seia.orgSource: SunPower

Rhone Resch(202) 682-0556

[email protected]

WWW.SEIA.ORG

www.seia.org

WWW.SEIA.ORG