Solar Market and Cost Analysis slide image

Solar Market and Cost Analysis

U.S. Generation Capacity Additions (GWac) U.S. Generation Capacity Additions by Source: 2010-2021 and Planned 2022-2023 70 0 60 60 50 50 40 40 30 20 20 10 0 Avg. (2010-2014) Avg. (2015-2019) 2020 2021 2022 2023 Other Nuclear Natural Gas (Other) Natural Gas CT • Natural Gas CC Batteries Wind DPV UPV - 61% Began operating through November 2022 Planned December 2022 and full 2023 . EIA estimates the percentage of U.S. electric capacity additions from solar will grow from 43% in 2021 (19 GWac) to 52% in 2022 (21 GWac), and 61% (41 GWac) in 2023. - Wind accounts for 9%, batteries 15%, and nuclear 3% of estimated capacity in 2023. Natural gas accounts for the remaining 10% in 2023. EIA's January 2023 estimate for PV capacity additions in 2023 (41 GWac) is 8 GWac (24%) higher than EIA's August 2022 estimate, which was made immediately before passage of the IRA. Wood Mackenzie and SEIA also increased their 2023 PV deployment estimate after passage of the IRA, but their December estimates are only about half of the EIA estimate for 2023 because of ongoing supply chain constraints. Owing to those constraints, Wood Mackenzie and SEIA expect the full benefits of the IRA will only be realized in 2024 or later. Sources: EIA Form 860M/Preliminary Monthly Electric Generator Inventory ("Planned" and "Operating" Nov 2022); EIA Short-term Energy Outlook Table 8b, Jan 2023; Wood Mackenzie and SEIA, Q4 2022 US Solar Market Insight, Sept 2022. NREL 14
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