US has 32 GW of large PV under development/construction

Some 18 months before the US Federal investment tax credit (ITC) for solar is cut, there are more than 32 GW of 5-MW-plus photovoltaic (PV) projects in development or under construction in the country.

Information and insight provider IHS says significant delays in the permitting process or the inability to secure a buyer for the plant’s output could be critical. Developers are rushing to take advantage of the 30% ITC. From the start of 2017 it falls to 10%, unless extended.

“Newly proposed projects appear to be primarily located in less contentious areas and developed at sizes that are likely to promote a high potential for success in a short time,” said Christine Beadle, senior analyst for IHS Technology. The most recent proposals are for plants of 20 MW to 100 MW.

Recent project approvals by the Bureau of Land Management (BOEM) have made installations in designated Solar Energy Zones very attractive, Beadle noted.

NextEra Energy Resources is among the developers that have huge plans before the ITC goes down. It will buy 1.5 GW of Hanwha Q Cells modules between the final quarter of 2015 and the last three months of 2016 for US projects. Canadian Solar Inc (NASDAQ:CSIQ), on the other hand, recently acquired US solar developer Recurrent Energy LLC from Sharp Corp, thereby growing its solar project pipeline by about 4 GW to 8.5 GW.

According to IHS’ report, about 44% of the PV projects under development or construction in the 2015-2017 period are located in California.

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