The study, U.S. Solar Energy Demand, indicates that for sustained growth to occur in the U.S. solar power market, the federal government needs to increase incentives. However, the study cites that some states and municipalities have taken the lead in providing incentives through a variety of mechanisms ranging from upfront rebates and property tax credits to renewable energy credits and even European-style feed-in tariffs. These states include California, New Jersey, Florida, Vermont and New York, with solar demand heating up in certain markets such as California and New Jersey.
Even though there is demand for solar installations in the U.S., the credit crisis has resulted in tight funding for these projects because banks are unwilling to lend to projects that have undetermined cash flows, according to the study. “The weak supply of tax equity combined with heightened credit requirements has led to numerous project cancellations and delays nationwide, with over 75 MW, totaling$450 million, of idle projects in New Jersey alone,” said George Kotzias, industry analyst for Pike Research, in a statement.