Residential flourishes and utility flounders in mixed 2018 for US PV

Facebook
Twitter
LinkedIn
Reddit
Email
Steady growth of residential PV installations shows the market nears maturity, the analysis said (Credit: SEIA / Wood Mackenzie)

Tariff and policy uncertainty saw installations decline across US utility and non-residential PV last year even as the residential segment bounced back, according to the Solar Energy Industries Association (SEIA) and Wood Mackenzie.

The latest update from the trade body and the consultancy found a 7% year-on-year dip for US utility-scale PV installations in 2018.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The segment, the analysis found, produced the bulk (6.2GW) of PV-wide capacity additions (10.6GW) in the country last year but faltered under “disruption, delay and even cancellation” due to Section 201 tariffs.

Adopted last year, the US levies on module and cell imports prompted sponsors to postpone 2018 commercial launches to 2019, according to the SEIA and Wood Mackenzie. In the Carolinas, delays were compounded by a hold-up with interconnections under the PURPA programme.

For utility-scale PV, the flip side to the Section 201 tariffs was that module prices are falling faster than expected. This, the analysis pointed out, boosted competitiveness and helped drive the signing of 13.2GW of utility solar PPAs in 2018; the resulting, current contracted pipeline of 25.3GW marks an all-time record for US solar. 

PV in US power addition top two for sixth year running

According to the SEIA and Wood Mackenzie, the 10.6GW added across all PV subcategories in 2018 marks the sixth consecutive year where solar is amongst the US top two for power additions, together with natural gas.

Unlike utility solar, the residential segment reversed its decline throughout 2017 by recording in 2018 year-on-year installation growth of 7%. The steady pace of addition indicates the market is nearing its maturity point, the new analysis indicates.

According to the document, installations across California, Massachusetts and the other typical residential heavyweights are being fast overtaken by new-entrants including Texas and Florida.

Future residential growth can be fuelled by incentives and net metering – Nevada saw a 261% jump in 2018 after reinstating the policy – but could be hindered by high customer acquisition costs, the SEIA and Wood Mackenzie noted.

Their analysis found a slight decline – 8% – in non-residential installations of US PV in 2018. Massachusetts and California alone saw a joint 450MW dip last year, although the former (64% drop) bore the brunt to a greater extent than the latter (17%).

See here for more information on the US Solar Market Insight by the SEIA and Wood Mackenzie

17 June 2025
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 17-18 June 2025, will be our fourth PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2026 and beyond.
7 October 2025
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 7-8 October 2025 is our third PV CellTech conference dedicated to the U.S. manufacturing sector. The events in 2023 and 2024 were a sell out success and 2025 will once again gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing in the U.S. out to 2030 and beyond.
21 October 2025
New York, USA
Returning for its 12th edition, Solar and Storage Finance USA Summit remains the annual event where decision-makers at the forefront of solar and storage projects across the United States and capital converge. Featuring the most active solar and storage transactors, join us for a packed two-days of deal-making, learning and networking.

Read Next

May 22, 2025
US energy utility AES has signed two long-term power purchase agreements (PPAs) with technology giant Meta for two solar PV projects in the US states of Texas and Kansas.
May 22, 2025
The New York State Energy and Research Development Authority (NYSERDA) has contracted 2.2GW of solar PV across 18 projects.
May 22, 2025
SMA Solar will begin local assembly of power systems for large-scale solar and energy storage systems in the US.
May 22, 2025
Prefabricated solar structure provider 5B has become the first recipient of the Australian government’s AU$1 billion Solar Sunshot Program, securing up to AU$46 million for its “Maverick” automated solar deployment system.
May 21, 2025
US PV module manufacturer Silfab Solar has acquired a patent portfolio for back-contact (BC) solar cells from solar research firm EnPV.
May 21, 2025
The US International Trade Commission has voted unanimously to impose AD/CVD tariffs on solar cells from Southeast Asia.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
June 17, 2025
Napa, USA
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 8, 2025
Asia
Solar Media Events
September 16, 2025
Athens, Greece