EIA: The United States Added 6.4 GW Of Small-Scale Photovoltaic Capacity in 2022

According to a recent report by the U.S. Energy Information Administration (EIA), the United States added 6.4 GW of small-scale photovoltaic systems in 2022, marking the highest growth in its solar industry to date.

Small-scale photovoltaic systems, often referred to as distributed photovoltaic systems or rooftop solar systems, include photovoltaic systems with an installed capacity of 1 MW or smaller. In the United States, the majority of small-scale photovoltaic systems are installed on residential buildings, particularly as rooftop solar systems.

The report highlights that the market for small-scale photovoltaic systems has seen rapid growth since 2014 when the United States had a cumulative installed capacity of 7.3 GW of small-scale photovoltaic systems. By 2022, the cumulative installed capacity of small-scale photovoltaic systems in the United States had surged to 39.5 GW, accounting for nearly one-third of all photovoltaic system installations. Over the past decade, several factors have driven the rapid growth in the installed capacity of small-scale photovoltaic systems in the United States. Tax incentives, supportive policies, favorable public policies, and rising retail electricity prices have provided a fertile ground for this growth. The push from decreasing costs of photovoltaic components has also played a significant role.

California has now become a leader in the U.S. small-scale photovoltaic market, accounting for 36% of the total installed capacity of small-scale photovoltaic systems in the United States. The state's abundant sunlight, attractive incentives, and relatively high electricity prices have been key factors driving the installation and adoption of rooftop solar systems.

California's Net Energy Metering (NEM) rules allow surplus electricity generated by rooftop solar systems to be fed back into the grid for revenue, further stimulating investments.

Starting in 2020, California mandated the installation of rooftop solar systems on newly constructed single-family and multi-family residences.

Surprisingly, New York and New Jersey, states with less sunshine throughout the year, ranked second and third in terms of installed small-scale photovoltaic system capacity. In recent years, states with ample sunshine like Texas and Arizona have been narrowing this gap.

The report notes that New York and New Jersey have provided continuous and generous incentives for the installation of small-scale photovoltaic systems through long-term policies, which have played a significant role in promoting the development of the U.S. small-scale photovoltaic market.

According to the report by the U.S. Energy Information Administration, it is important to consider population-adjusted metrics to gain a deeper understanding of the prevalence of small-scale photovoltaic systems installed in different states. Although California has the highest installed capacity of small-scale photovoltaic systems, Hawaii leads in the widespread adoption of small-scale photovoltaics with 541W per capita.

Hawaii has historically relied on oil-fired power plants to provide most of its electricity, resulting in high electricity costs for its residents. However, with the substantial decrease in the cost of photovoltaic components, many households and businesses in Hawaii have started installing photovoltaic systems. This transition has not only reduced their electricity bills but also aligns with the state's goal of using 100% renewable energy by 2045.

According to a previous report by the U.S. Energy Information Administration (EIA), by 2050, the operational capacity of coal-fired power plants in the United States may decrease by approximately 88% compared to 2022. This reduction is expected as environmental regulations increase operating costs, and natural gas and renewable energy-driven generation facilities replace aging fossil fuel power plants.

The EIA also stated in early March that approximately 82% of the utility-scale renewable energy capacity planned for development in the United States in 2023 comes from wind power facilities, photovoltaic systems, and battery energy storage systems.
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