part 3 of 4
Utility PV 9.8GW installed in Q1 2024. Up 135% from Q1 2023
184GW of utility-scale solar will be added between 2024 and 2029
The utility-scale segment achieved a record in the first quarter, with 9.8GW installed.
The utility-scale sector achieved its strongest first quarter on record, with 9.8GW of capacity installed in Q1 2024, growing 135% year-over-year. Additionally, newly contracted projects in Q1 2024 reached 4.4GW, with corporate and utility procurement as the main drivers for newly contracted capacity. Although procurement activity has continued, installations have outpaced its growth, reducing the contracted pipeline by 5% to 96GW.
The substantial increase in first-quarter installations was driven by a backlog of projects slated to come online in 2023 but materialized in Q1 2024. President Biden’s two-year tariff waiver on imported Southeast Asian crystalline silicon modules ends in June 2024. The temporary waiver has contributed to increased imports and higher module inventory levels. However, modules imported under the waiver subject to the circumvention tariffs must be “utilized” within 180 days of the waiver’s expiration by December 3, 202). This has driven increased installation activity at the start of the year.
Wood Mackenzie forecasts that 184GW of new utility-scale solar will come online between 2024-2029, reflecting a 1% increase compared to our previous forecast. High installation volumes mainly drive the 3.1GW rise in Q1 2024. Utility procurements, corporate clean energy goals, and state-mandated targets continue driving strong demand in the utility-scale sector, maintaining an average annual buildout of 30GW. Despite strong installation growth compared to Q1 2023, labor and high-voltage equipment availability will continue to limit buildout through 2025. Continued issues with permitting and interconnection will also restrict utility-scale installations, maintaining the relatively flat buildout throughout the rest of the forecast period.
Reprinted from SEIAs report and edited by Robert Benedict
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