According to the recent report by Frost &Sullivan “Analysis of the U.S Utility Scale Solar Power Market”, this market will attract in the U.S more than $20 billion of investment in the next three years. The report also concludes that solar power is “emerging from the shadow of conventional energy in the U.S.”
Solar power has become the fastest-growing technology in the U.S. energy industry, and will continue to be over the next few years. The U.S utility-scale solar power market has grown during the last three years as a consequence of rising energy prices, volatility of fuel costs, and government incentives for renewable energy.In fact, it attracted $1.9 billion of investment in 2011.
This research study, that analyzes the U.S utility-scale solar power market along with the investment and installed capacity forecasts, states that utility scale solar continues to be dominated by photovoltaics, however, in the data analyzed in the report, Frost & Sullivan notes that CSP development is taking place.
Frost & Sullivan analyst Georgina Benedetti also notes that restrictions to project financing could result in the near term, due to uncertainty that cash grants for solar development may not be extended past March 1, 2013. “To be willing to fund these projects, banks and investors must be confident that a power plant will operate long enough to return their investment,” explained Benedetti, in the release. “Therefore, well-established project developers using proven technologies will have an advantage in obtaining financing.”