U.S. Solar Energy Market Experiencing an Unprecedented Boom

Thanks to a renewal of federal tax credits and a continuing steep drop in the price of photovoltaic panels, U.S. solar energy production is surging to record highs. New market reports show that the U.S. solar industry is expected to install 14.5 gigawatts of solar power in 2016, nearly double the record 7.5 gigawatts installed last year. (Less than 1 gigawatt of solar power was installed in 2010.) Revenues from solar installations increased 21 percent from 2014 to 2015, surpassing $22 billion. In terms of megawatts of electricity produced, new solar installations are expected in 2016 to surpass all other new sources, including natural gas-fired power plants. The extension of a 30-percent federal tax credit and a sharp drop in prices — the wholesale price of solar panels has fallen from $4 per watt in 2008 to $0.65 per watt today — are contributing to the boom. U.S.-based Solar World is building a giant solar panel factory in Buffalo, New York that is expected to employ 3,500 people.