Renewables to account for 26% of US microgrid capacity by 2020

Facebook
Twitter
LinkedIn
Reddit
Email

Renewables including solar are expected to account for 26% of total microgrid capacity in the US by 2020, up from just 6% today, according to GTM Research’s latest report.

The study, 'North American Microgrids 2015: Advancing Beyond Local Energy Optimization' found that cumulative investment in microgrids in the country will go beyond US$3.5 billion by 2040, with a total microgrid capacity of 2.8GW.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

Omar Saadeh, senior grid analyst at GTM Research, told PV Tech that a growth in microgrids using solar over the coming years can be attributed to substantial cost decreases in PV and better integration methodologies.

He added: “The price point for those technologies is decreasing such that a microgrid can be seen as a more economically viable platform to integrate Distributed Energy Resources (DERs).”

There are also state initiatives promoting such technology in Massachusetts, New York and California with Connecticut introducing initiatives a few years ago.

A GTM statement said: “As solar PV adoption rates increase, flexible micro-grid solutions are becoming a significant component of renewable integration strategies in regions extending beyond high penetration states such as Hawaii and California.”

Saadeh said that various value propositions for micro-grids are seeing “substantial traction” at the moment. For example micro-grids can be used with critical infrastructure to keep the power on at a hospital or with large commercial customers that need to keep their operations running to meet their end goals.

Saadeh said that 44% of US Microgrids now include energy storage, of which 92% has been commissioned since 2012, suggesting a substantial increase in the value proposition of energy storage within microgrids.

Read Next

September 18, 2025
CERC is finalising guidelines for virtual power purchase agreements (vPPAs) to unlock financing for over 40GW of uncontracted renewable capacity.
September 18, 2025
The capacity of virtual power plants in operation in North America has reached 37.5GW, a 13.7% year-on-year growth, according to Wood Mackenzie.
September 18, 2025
The Canadian Renewable Energy Association (CanREA) has forecast that Canada will add between 17GW and 26GW of solar PV over the next decade.
September 18, 2025
Researchers have called for enhanced international standards to detect ultraviolet-induced degradation (UVID) in PV modules after identifying “severe” levels of the problem in operational n-type panels.             
September 18, 2025
Indian PV makers have welcomed the government’s plan to add solar wafers to its ALMM List-III from June 2028.
September 17, 2025
US renewables developer Longroad Energy has reached financial close for its 400MW 1000 Mile solar project in the US state of Texas.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines
Solar Media Events
October 7, 2025
San Francisco Bay Area, USA