US installs record-smashing 4.1 GW of solar in Q3

The US installed 4,143 MW direct current (DC) of photovoltaic (PV) capacity in the third quarter of 2016, more than any other quarter on record, according to GTM Research and the Solar Energy Industries Association's (SEIA) Q4 2016 US Solar Market Insight report, out today.

Installations were driven by an "unprecedented rate of project completion" in the utility-scale segment.

The new quarterly record will not last long as it will be exceeded in the fourth quarter of the year, when the utility segment alone is expected to add 4.8 GW.

"Driven by a large pipeline of utility PV projects initially procured under the assumption of a 2016 federal ITC expiration, the third quarter of 2016 represents the first phase of this massive wave of project completion – a trend that will continue well into the first half of 2017," said Cory Honeyman, associate director of US solar at GTM Research.

The residential PV market, however, declined 10% from the previous quarter, only the second quarter-over-quarter fall in five years, although it saw more than a half gigawatts installed for the sixth consecutive quarter. The slowdown is attributed to changes in the sales cycles in mature state markets like California, and challenges posed by rate design reform, such as the elimination of net metering in Nevada. The residential PV segment grew only 2% year-over-year.

The non-residential segment, meanwhile, installed 375 MW, expanding 15% quarter-over-quarter and 37% annually, aided by community solar.

The US had 35.8 GW of total installed PV capacity in the third quarter, according to the report. GTM Research expects that 14.1 GW will be added in 2016, a rise of 88% compared to 2015.

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