How much money can you save using solar? You may most likely discover the answer in approximately 60 seconds with a little self-research!
You are surely aware of the states that have had significant solar development over the past several years, including California, Hawaii, Arizona, New Jersey, and North Carolina. However, there are 4 other states and 1 city that are rapidly gaining ground in the solar energy sector despite your doubts that they will eventually become solar leaders.
These were disclosed at Solar Power International last week, when GTM Research called them “hidden growth opportunities.” The demand for solar PV in these areas is expected to reach over 1 gigawatt (1 billion watts) overall during the second half of this year (2013) and 2016. It’s a lot, that. These 5 markets are likely to be fantastic for solar panel providers.
So, let’s briefly review these hot solar markets (or ones that are about to become hot), in no particular order:
1.Minnesota
Not exactly the sunniest state in the US, Minnesota’s solar power capacity could be increased by state mandates that utilities obtain 1.5% of their electricity from solar power and 10% from distributed, small-scale power generation systems (systems 20 kilowatts or smaller, such as home solar systems), as well as net metering (which enables solar power producers to sell their electricity back to the grid at retail electricity prices) for systems up to 1 megawatt (MW) in size. We shall see.
Notably, homeowners in Minnesota who install solar panels are predicted to receive an internal rate of return (IRR) on their investment of 10% on average, outpacing the S&P’s 50-year CAGR of 9.9%. This is excellent.
2.Virginia
Virginia doesn’t have the finest solar resources available, despite having cheap power. How then does this state appear to be a hotspot for solar energy? HB 2334, a Virginia statute, mandates that Dominion Energy, the state’s major utility, construct a 50-megawatt PPA renewable energy pilot program. Who knows what could be inspired by a trial project with a capacity of 50 megawatts? Net metering is also used in Virginia. There aren’t many individuals who would want to rely on their own clean electricity source while simultaneously saving money, but it may be the only positive aspect of solar power, which is a shame. Aren’t they a few significant incentives?
The average homeowner is expected to save/earn more by investing in solar in Virginia than they would by investing in a 30-year U.S. Treasury Bond or a 5-year CD, even if Virginia solar investment may not be as profitable as solar investment in Minnesota. The IRR offered here should convince homeowners to switch to solar power immediately.
3.Washington, D.C.
This is the non-state, yes. You may be wondering what this little city has to offer to be included on our list. For starters, by 2023, solar energy must account for 2.5% of DC power (about 250 MW of power capacity). Additionally, there is a huge demand for expansion in the city’s undersupplied Solar Renewable Energy Certificate (SREC) market. Additionally, DC permits net metering for projects up to 5 MW in size (very large), enabling more individuals to participate in (and benefit from) rather sizable solar projects, including “community solar gardens.”
The average IRR for solar investments in DC is higher than in any other US state outside Hawaii. 20%! In DC, failing to use solar energy on a roof is almost against the law. Additionally, even if you don’t have a roof but reside in DC, you may benefit from that excellent IRR by investing in a community solar garden because of the city’s progressive net metering rule. Suppliers of solar panels must be salivating as they see the DC market.
4.Louisiana
Despite having many solar resources, Louisiana has hardly any solar power infrastructure. In the upcoming few years, GTM Research appears to be optimistic that the market will start to take notice. There are net metering and a state tax credit for solar panel installations through 2017, but there are no governmental obligations for utilities to use more solar energy. The anticipated IRR for someone installing solar in Louisiana is often a very alluring 9.4%. It makes no sense.
