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U.S. expected to deploy 77.3 GW of distributed renewables between 2016 and 2025

By Michelle Froese | June 23, 2016

During the last decade, improvements in regulatory policies and technology cost reductions have accelerated distributed renewables deployments in the U.S.

During the last decade, improvements in regulatory policies and technology cost reductions have accelerated distributed renewables deployments in the U.S.

A new report from Navigant Research examines the U.S. market for distributed renewables, with forecasts by state for solar PV, distributed wind, and biogas, through 2025.

Distributed renewables technologies have unique characteristics that can act as generation and/or load control on the grid, yet they each represent a dynamic resource that is challenging the industry’s prevailing business models and operating procedures. During the last decade, improvements in regulatory policies and technology cost reductions have accelerated distributed renewables deployments in the United States.

“The deployment of distributed renewables in the U.S. is heavily concentrated in a few states, and the top 10 markets are expected to deploy 89% of new capacity,” says Roberto Rodriguez Labastida, senior research analyst with Navigant Research. “As distributed renewables continue to evolve from their identity as fringe generation resources to become the workhorse of the power sector, it is important that all electricity sector stakeholders execute a new strategy around renewables in order to remain relevant.”

In addition to utility strategy, policies affect the deployment of distributed renewables in the United States, according to the report. Tax credits that help reduce the upfront cost of the investment and renewables mandates that increase the value of the electricity produced by renewable sources will likely be phased out, while policies like net metering may be altered to ensure that they reflect the true value of distributed renewables.

The report, U.S. Distributed Renewables Deployment Forecast, analyzes the U.S. market for distributed renewables, with a focus on solar PV, distributed wind, and biogas in the top 10 markets. The study examines the market issues, including policy and technology trends, related to distributed renewables in the United States. Forecasts by U.S. state for the three technologies and installation types for solar PV (residential, commercial, and utility) extend through 2025. Data on installers, financing types, and module manufacturers is provided for the distributed solar market in California. The report also examines the key inflection points, as well as the cost trends, business models, and implications for grid integration, related to distributed renewables in the United States.

An Executive Summary of the report is available for free download on the Navigant Research website.

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