This year has turned out to be a boom year for the solar industry, thanks in no small part to lucrative government subsidies in Europe, particularly in countries such as Germany and Italy. New solar project installations shot up from 7.2 GW in 2009 to an estimated 15.8 GW in 2010, according to iSuppli. But analysts are predicting slower growth in 2011 because incentives in these key European markets are set to fall quite a bit. At the same time the U.S. market could grow faster. Here are key trends I expect to see in 2011:
1. The rise of the U.S. market. Given the size of the country, solar industry folks have long counted on the U.S. as becoming a dominant solar electricity generator one day. We’ll likely see a particularly big upswing in that direction because of a confluence of state and federal policies. Congress just extended a popular grant program that helps to cover 30 percent of the cost of installing solar projects. The extension will end Dec. 31, 2011, and projects that start construction by the deadline will still qualify to get the money. That deadline will prompt companies to quicken their project development pace.
Project developers who have signed contracts to sell solar electricity to California