Solar Electric Power
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 380 solar electric power companies in the US operate solar electric power generation facilities that use energy from the sun to produce electricity, which is provided to electric power transmission systems or electric power distribution systems. Utility-scale solar is generally defined as a facility with generation capacity of one megawatt (MW) or more, which is sold to utilities or wholesale electricity buyers.
Dependence on Geographical and Seasonal Factors
Production and capacity factors are affected by geographical and seasonal considerations.
Reliance on Government Incentives
Because the cost of solar power exceeds the cost of power furnished by the electric utility grid in most locations, the industry relies on government incentives, mandates, and policies that support investment in alternative energy sources.
Industry size & Structure
The average solar power generator employs about 13 workers and generates about $5 million annually.
- The solar power generator industry consists of about 380 firms that employ about 4,800 workers and generate about $2 billion annually.
- The industry is highly concentrated; the top 20 companies account for 88% of industry revenue.
- Large firms include First Solar, EcoPlexus, Avantus, and AES Corporation.
Industry Forecast
Solar Electric Power Industry Growth
Recent Developments
Nov 5, 2024 - Utility-Scale Solar Generation Surges
- According to an October 2024 report by the US Energy Information Administration (EIA), utility-scale solar electricity generation in the Lower 48 states in August 2024 was up 36% compared to the same month in 2023. By the end of 2024, the EIA expects the US to add 24 gigawatts (GW) of utility-scale solar generation capacity. Between August and December 2024, the EIA forecasts utility-scale solar will account for 63% of all new electricity generation capacity that comes online. In August 2024, three states accounted for nearly half of the US utility-scale solar fleet: California (21 GW), Texas (18.8 GW), and Florida (9.7 GW).
- Renewable energy’s levelized cost of electricity (LCOE) in North America fell 4.6% in 2024, driven primarily by a 4.2% decline in capital costs, according to consulting firm Wood Mackenzie and reporting by Utility Dive. Led by utility-scale wind and solar, the levelized costs for renewables are dropping worldwide. The LCOE for utility-scale solar is expected to drop by an average of 60% by 2060, amid rising production capacity for key components including polysilicon, and advancements in solar cell technology.
- In August 2024, the Biden administration moved to increase the tariff-free solar cell import volume quota from 5 gigawatts (GW) to 12.5 GW, according to Electrek. Raising the import quota for solar cell imports will help keep US solar module producers supplied while the nascent US supply base for solar cells can have more time to develop, according to the Solar Energy Industries Association. Industry observers suggest the policy change makes sense as there is virtually no current US production of solar cells, so US-based solar panel manufacturers are almost entirely dependent on imports.
- Surging demand for solar power comes amid a shortage of workers to build solar farms, but a handful of companies hope to use robots to speed up the process, according to The New York Times. One of the US’s largest renewable energy firms, AES, has developed a pick-up truck-sized robot called Maximus that uses suction cups and AI-enabled computer vision to accurately install and position solar panels. AES says that eventually, Maximus will be able to install panels at twice the speed of a human workforce and at half the cost. Later this year, AES plans to deploy Maximus in California to build the largest solar-plus-battery project currently in development. Another firm, Built Robotics, has a pile-driving robot for building solar farm foundations. Terabase Energy has developed a robot-enabled mobile factory for the on-site assembly of solar modules.
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