Solar market slows as large projects shift to 2020

A solar energy trade group said Tuesday that the industry will grow at a slower pace than initially projected as some large-scale projects are pushed into 2020, according to Reuters.

After forecasting growth of 25 percent earlier this year, the Solar Energy Industries Association, in its newest quarterly joint report, downgraded the forecast to 17 percent growth to 12.6 gigawatts, according to the news service.

{mosads}The group also raised its five-year growth projection to 6.7 gigawatts amid increased commitment from utilities to up their use of renewable energy, according to Reuters, projecting that such pledges will drive 20 percent of the demand for solar energy over the next five years.

Planned large-scale solar installations for utilities currently stand at nearly 38 gigawatts, an all-time high, according to the report. Tax credits for renewable installations currently stand at 30 percent but will fall to 10 percent in 2022, leading to a race among utilities ahead of the deadline.

The report also found the cost of solar energy systems dropped in all markets, with residential system prices falling 6.8 percent compared to last year and utility systems falling 10–11.4 percent, according to Reuters. An oversupply of panels by China, their top producer, has led to steep drops in global panel prices over the past year, according to the news service.