New U.S. solar installations will increase by a third this year, a report published on Thursday showed, as soaring demand by utilities for carbon-free power more than outweighs a dramatic decline in rooftop system orders for homes and businesses due to the coronavirus pandemic.
The solar industry will install 18 gigawatts this year, enough to power more than 3 million homes, according to the report by the U.S. Solar Industries Association and energy research firm Wood Mackenzie. That is 9% less than the group’s forecast before the outbreak prompted construction delays, weakened consumer demand and tightened access to financing.
Risks to the sector’s medium and long-term growth, however, include increased capital costs due to weak markets, reduced demand from commercial and industrial customers experiencing financial hardship, and delays in utility procurement plans. Solar accounted for 40% of new U.S. capacity additions in the first quarter, ahead of natural gas and wind.
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