Dive Brief:
- The pace of utility-scale project development in the Southwest has slowed sharply, with some projects getting canceled because of an inability to land financing. But mid-sized and rooftop solar development is booming.
- Developers sought federal permits for 365 projects since 2009, but only 20 are on track to being built.
- California utilities are on track to meeting the state's renewable portfolio standard so they have little incentive to sign solar power purchase agreements.
Dive Insight:
"Nobody's going to break ground on any big new solar projects right now — utilities want to see how farms coming online this year fit into the grid, and developers are waiting for more certainty about state policies and federal tax credits,” Amit Ronen, director of the George Washington University Solar Institute, said.
It may be years, if ever, that there is another wave of large utility-scale solar. Huge projects may benefit from economies of scale, but they face tough permitting requirements and need large high-voltage power lines to deliver their power. In contrast, smaller-scale projects in the 20 MW range and rooftop solar are much easier to develop, can be more easily sited and can be located closer to where they are needed.