SEVEN KEYS TO SUN’S SUCCESS

Seven Key Observations About Solar Power's Success In 2010
Jessica Lillian, 9 June 2011 (Solar Industry)

"…In ranking utilities by their totals of newly installed solar power, the fourth annual Utility Solar Rankings…from the Solar Electric Power Association (SEPA) reveals several striking trends…[that] provide cues for the future of the utility solar power market.

"…[1] Utilities' solar portfolios are growing rapidly...[U]tilities can incorporate PV and concentrating solar power (CSP)… through power purchase agreements, small distributed customer-owned systems, or projects that they develop and own themselves…The top 10 utilities integrated a total of 561 MW of solar last year, which represents 100% year-over-year growth…"

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"…[2] Among the top 10 utilities, more than half - seven - were not based in California, and four were located in the East…[T]he non-California share of the utility solar market has grown substantially over the past two years, from 25% in 2008 to 63% in 2010…

"…[3] Pacific Gas & Electric (PG&E), which installed 157 MW of solar in 2010, retained its position at No. 1. Although Florida Power & Light (FPL) jumped two spots to occupy the No. 2 position, the top four utilities - which also include Public Service Electric & Gas Co. and Southern California Edison (SCE) - also constituted the top four in 2009…This is the third straight year that these [PG&E and SCE] have held the top spots."

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"…[4] PV is in; CSP is out (for now)…[All but one] of the projects that comprised the top 10 utilities' capacity were photovoltaic installations…Although PV projects above 50 MW are subject to many of the same challenges as CSP projects, their ability to be built and energized in subsections results in less construction risk and balance-sheet impact…[J]ust three of the top 10 utilities in cumulative solar capacity have significant CSP…[5] Utilities increasingly like owning their own solar capacity…Thirty utilities now own 18% of the market - a combined 140 MW…

"…[6] IOUs dominate, but municipal utilities continue strong growth…[A]ll of the top 10 utilities in the rankings for cumulative [and new] solar megawatts were IOUs…Municipal utilities nevertheless…[showed] a year-over-year increase of more than 165%...[But, 7]…Watts-per-customer tells a different - and compelling - story…Here, smaller utilities - as well as municipal utilities and cooperatives - retain a better chance of competing…"