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Solar industry revenue spikes 36% in 2009, says trade group

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The U.S. solar industry seems to be hitting its stride, at least according to the Solar Energy Industries Assn.

And California continues to dominate, according to an annual report released Thursday morning by the trade group.

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With 220 megawatts of solar electric systems installed last year, the Golden State far outshone the rest of the country. And with cumulative capacity at 1,102 megawatts, the state eclipsed the 128 total megawatts of New Jersey, its closest competitor.

Revenue across the industry nationwide rose 36% last year, total installed capacity rose 5% to exceed 2 gigawatts and 10,000 direct jobs were created.

But the growth rate was hampered by the recession, according to the report. Total installed capacity the previous year had risen nearly 10%.

Photovoltaic panel capacity grew 84% in 2008, compared to just 38% last year, the group said. The market for residential photovoltaics grew to 156 megawatts from 78 megawatts in 2008, but the commercial market slowed. Solar water heating increased 10%, but solar pool heating equipment dropped the same percentage.

Business was still backed by steady funds, the association said, with $1.4 billion in solar-focused venture capital investment in 2009. Government policies also helped, including a solar investment tax credit, the Treasury Grant program, third-party leasing options and more.

“In addition to strong policies at the state and federal level, solar’s growth was driven by the emergence of new business models and declining prices,” said association chief executive Rhone Resch in a statement. “Consumers took notice that now is the best time to go solar.’

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But the U.S. solar industry still lags behind countries such as Germany and Japan in new installations and cumulative capacity. Germany is the titleholder, with 3,000 megawatts of new capacity installed in 2009 and 8,877 megawatts total.

The U.S., which draws less than 1% of its electricity supply from solar power, has also lost its lead in photovoltaics manufacturing. And while the price of photovoltaic modules have sunk more than 40% since mid-2008 to roughly $1.85 to $2.25 a watt, the average cost of installation for consumers has slipped just 10%.

-- Tiffany Hsu

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