Is The Sun Still Shining For The Solar Industry?

The solar industry became a true star in the energy sector. The United States, as a traditional fossil fuel consumer, turned to the solar industry more decisively in 2019.

According to Wood Mackenzie/SEIA U.S. Solar Market Insight, solar capacities increased by 13.3 gigawatts (GW) last year, which presents a 23% increase compared to 2018. More importantly, approximately 40% of all electric-generating capacities in the U.S. came from solar, a new record.

However, our current situation regarding coronavirus (COVID-19) threatens to put a black spot on the sun. It is not COVID-19 that will harm the solar industry, but the damaged economy, where renewable energy sources will probably not make it to the top of the priority list when the time comes for licking our wounds from this battle. Still, the solar industry will remain strong despite the current situation, which is by the majority of analysts the worst we've encountered since WWII.

Private Homes Will Save The Solar Universe

Sunrun RUN recently reported 52k new customers to its base in 2019, a 22% year-over-year increase. Vivint Solar VSLR, the residential solar solutions provider, also recorded a 22% capacity increase.

The residential photovoltaic market, which as 76GW last year, will continue to grow—unlike the nonresidential market, which is in decline. The so-called "sunny states", Texas, Nevada, and Florida, are recording constant growth, while last year's champion was California, broadening the market. 

In Q4 2019, more than 300 megawatts (MW) of new capacities were installed across the U.S. It is for the first time in history that more than 300MW were installed in one quarter. Residential PV will remain the main driver for the industry.

Are Dark Clouds On The Horizon?

2019 was the best year for the solar industry, and experts predicted an even brighter 2020. Wood Mackenzie projected an additional 20GW of PV installations in 2020, which is a 47% increase compared to the record set in 2019 with 13.3GW of PV installation. But despite these strong and beyond optimistic forecasts regarding growth, experts omitted one important factor – the coronavirus (COVID-19). Not only will the economy be affected along with residential consumption, but also there will be dramatic supply chain complications. Canadian Solar CSIQ, a leading PV modules manufacturer, stated that it is facing a serious setback in manufacturing capacity because of the virus. And it will have serious consequences on the company's performance in 2020.

Put Your Glasses On Because The Sun Will Shine

Short-term investors in the solar industry might be disappointed with the recent events and the fact that 2020 probably will not be as expected. Moreover,  the current global pandemic could significantly hamper its growth. Still, the long-term outlook for the solar industry remains sunny. The residential market has already warmed up and it will continue to do so in the future, therefore we can dare to believe that the long-term forecast will remain unaffected by the virus.

This article is not a press release and is contributed by Ivana Popovic who is a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. Ivana Popovic does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: contributors@iamnewswire.com Questions about this release can be send to ivana@iamnewswire.com

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Photo by Vivint Solar on Unsplash