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The US solar market is set to add 29.1 GW of new utility-scale PV and 9.4 GW of storage in 2023, according to the US Energy Information Administration (EIA). If that new capacity goes online as planned, 2023 will have the most new utility-scale PV capacity added in a single year.
From pv magazine USA
Buoyed by the US Inflation Reduction Act (IRA) and statewide requests for proposals for renewable energy, EIA researchers predict that US project developers will deploy up to 29.1 GW of solar and up to 9.4 GW of energy storage. This represents 70% of the 54.5 GW of new US generating capacity set to enter the grid this year.
In the EIA’s latest Monthly Update to Annual Electric Generator Report (EIA-860M), following delayed 2022 utility-scale solar projects due to trade issues from the Uyghur Forced Labor Prevention Act (UFLPA), the solar market is forecast to rebound this year with 29.1 GW of new installations. If all the new capacity goes online as planned, 2023 will have the most new utility-scale solar capacity added in a single year – more than doubling the current record of 13.4 GW deployed in 2021, says the EIA.
US utility-scale solar capacity has been rising rapidly since 2010. Despite its upward trend over the past decade, additions of utility-scale solar capacity declined by 23% in 2022 compared with 2021. This decline in solar capacity additions was the result of the UFLPA trade issues amid broader supply chain disruptions and other pandemic-related challenges.
In 2023, the EIA forecasts the largest new solar development queues to come from Texas (7.7 GW) and California (4.2 GW), which together account for 41% of new planned capacity.
Energy storage development has grown rapidly over the last few years, with that market currently eligible to start receiving its own 30% standalone storage investment tax credit under the IRA guidelines. In 2023, US battery capacity will likely more than double, according to EIA estimates. Developers have reported plans to add 9.4 GW of battery storage to the existing 8.8 GW of battery storage capacity accounted in recent years, the EIA reports.
Energy storage is rapidly increasing as paired with utility solar and wind projects. Batteries can store excess electricity from wind and solar generators for later use based on daily intermittent patterns from wind and solar generation. In 2023, the EIA expects 71% of the new storage capacity to also come from California and Texas, states with significant solar and wind resources. Arizona Public Service and Florida Power & Light, a NextEra Energy utility, are two of the largest offtake parties of storage for the year ahead, with battery systems ranging from 16 MW to 50 MW per project, while AES and Hawaiian Electric are procuring energy storage systems of 30 MW and 36 MW, respectively.