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
Jan 7, 2025 - Biden Administration Increases Tariffs on Solar Components
- In mid-December, the Biden administration said it would increase Section 301 tariffs on imports of certain solar energy components from China, according to Supply Chain Dive. The new tariffs went into effect on January 1, 2025. US imports of solar wafers and polysilicon from China are now subject to a 50% tariff. The tariff on tungsten products, including bars and sheets, increased to 25%. Some renewable energy observers suggest tariffs on solar products from China could rise further as President-elect Trump has vowed to raise tariffs on goods from China.
- A recent report by consulting firm ICF and commissioned by the American Clean Power Association estimates that the Inflation Reduction Act (IRA) could generate $2.7 trillion in net economic benefits by 2035. The IRA is projected to offer $740 billion in tax credits, which could stimulate $2 trillion in private capital expenditures, $400 billion of which would be spent in the power sector. The report suggests the economic impact of the IRA – including new jobs, energy cost savings, and increased disposable income – will add $1.9 trillion to US GDP and eliminate 4.1 billion tons of CO2 emissions.
- The value of US shipments of photovoltaic (PV) modules, a demand indicator for solar installations, rose by 40% in September 2024 compared to August, according to the US Energy Information Administration (EIA). September’s PV module sales were up 8.37% compared to a year earlier. On a year-to-date basis, US PV module sales increased 8.8% in the first nine months of 2024 compared to the same period in 2023.
- 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.
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