Government Aid to North America Ground Mount PV Utility Market Paves the Way for Solar Energy to Become a Mainstay in Electricity Generation
Over the last few years, policymakers in North America have conspicuously invested on several techniques and methods of harnessing energy from renewable sources. Their efforts are not only identified and appreciated globally, but the region is also touted as the forerunner in terms of fulfilling demand for energy with renewable sources. Countries such as the U.S. and Canada are increasingly investing on solar energy resources. Until the fourth quarter of 2014, the U.S. had 18.3 GW (gigawatts) of installed photovoltaic capacity. During the same time the U.S. also had 1.7 GW of concentrated solar power. According to a report published by the U.S. Energy Information Administration, by 2015 the country is likely to boast a solar power utility scale of 21.16 terawatt-hours, which represents 0.52% of the total electricity consumed in the U.S.
Browse Market Research Report of North America Ground Mount PV Utility:
Photovoltaic is the name given to the method and technique of converting solar energy into direct current electricity through using semiconducting materials that create voltage or electric current upon exposure to sunlight. The growth of photovoltaic (PV) installations in North America has been phenomenal. Photovoltaics or PV, also known as solar PV, has gradually evolved from a typical niche market segment exhibiting small-scale applications to an emerging mainstream electricity source over the last two decades.
A leading U.S.-based market intelligence firm, Transparency Market Research, has recently conducted a study on the ground mount PV utility market in North America. The findings of the study reveal that the North America ground mount PV utility market, which stood at US$7,311.8 million in 2013, will exhibit an impressive 11.5% AAGR to reach US$19,464.1 million by 2022.
How North American Governments have Helped the Ground Mount PV Utility Market
#1. There are several factors that have contributed to the expansion of the ground mount PV utility market in North America. First and foremost, the leading nations of this region have stable government incentive policies with regards to the solar power industry. The prevalence of such favorable policies plays a pivotal role in propelling the ground mount PV utility market in the region.
#2. For a novel technology to become a mainstay, huge investments are required. The governments in North America are leaving no stone unturned to encourage corporate houses and private entrepreneurs to invest in solar energy. For instance, the federal solar investment tax credit, which has been in effect in the U.S. since 2006, provides a whopping 30% tax credit to owners of solar energy systems for the first five years, starting from the day the solar energy system starts operation. This incentive will remain effective until 2016.
#3. Owing to such government incentives and other correlated factors, the prices of PV installation are declining continuously in North America. In the U.S. alone, the average price incurred on a completed ground mount PV utility project plummeted by 45% in the second quarter of 2014, compared to the prices prevalent during 2012. Such fall in the overall prices of PV projects has been noted across North America, which has helped in augmenting the number of ground mount installations.
Browse Press Release of North America Ground Mount PV Utility Market:
Such steps taken by North American countries to gradually shift from conventional sources of energy to renewable sources, are setting an example for economies around the world to observe and implement.