Though this has led to higher adoption, investment figures have not gone up, as the average selling price of solar PV modules continues to decline.
Further, restrictions in project financing could limit investors, such as uncertainty around the extension of cash grants beyond March 1, 2013, as these are an investment tax credit substitute for developers. Since many solar project developers do not have tax liabilities large enough to efficiently capture the full amount of tax credits available, they have to rely on tax equity partners for finances.
"To be willing to fund these projects, banks and investors must be confident that a power plant will operate long enough to return their investment," explained Benedetti. "Therefore, well-established project developers using proven technologies will have an advantage in obtaining financing."
Federal incentives such as investment tax credits and loan programs will continue to promote large-scale commercialization of solar energy, and boost the setting up of solar plants in the United States.Analysis of the U.S. Utility-scale Solar Power Market is part of the Energy & Power Growth Partnership Services program, which also includes: Analysis of the U.S. Residential Solar Power Market and Annual Global Power & Energy Outlook 2012. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Connect with Frost & Sullivan on social media, including Twitter, Facebook, SlideShare, and LinkedIn, for the latest news and updates. About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
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