Solar Energy Thriving in Competitive Markets

California and New Jersey – two states with well-structured organized markets for electiricity – are leading the nation in solar capacity, according to the Solar Energy Industries Association’s (SEIA) Year in Review report released last week. 
 
The solar market grew from $3.6 billion in 2009 to $6.0 billion in 2010, with installations totaling 956 megawatts (MW), achieving a capacity of 2.6 gigawatts. According to SEIA, this represents only the beginning of such growth. In 2011, the organization expects U.S. solar installations to double from 2010 levels.
 
Joining California and New Jersey on the “top ten” list of solar states are Pennsylvania and Texas, which also benefit from competitive electricity markets. It is easy to understand why solar energy is thriving in these states, as competitive electricity markets offer advantages to clean energy generation, including a wide geographic footprint with diverse resources to accommodate variable generation output, low barriers to market entry, and easy access to long-distance transmission that provides flexibility to enable solar providers to sell their power.
 
California is currently witnessing a solar energy boom, with nine major projects totaling 4,300 MW of clean energy currently under construction or proposed. Following in California’s path, New Jersey – another competitive market state – became the second state to install more than 100 MW in a single year.
 
Texas and Pennsylvania both made the “top ten” in solar energy installations for the first time in 2010.
 
As solar energy expands and advances into new markets across the country, the opportunity to benefit from the flexibility and transparency offered in the competitive markets creates an economic and environmental opportunity for investors, customers and numerous other economic and environmental stakeholders. 
 

Joel Malina | March 16, 2011