Happy New Year from Vasari Energy, where we are filled with optimism about our company’s potential in 2016. The solar energy industry goes into the new year with the wind at its sails and Vasari Energy stands poised to capitalize on positive market and policy developments.
Just as legislation passed in Congress to extend key industry tax credits, our company is expanding its talent base to find new opportunities to meet growing demand in all sectors of the solar energy industry. The continued certainty of the tax credit should ensure that the hot solar market continues growing at its record pace, as 2015 was another banner year for the U.S. solar industry with the 4th quarter on pace to be the best ever for solar power installations.
These developments were just the beginning. Vasari Energy has plans to continue expanding its staff to bring on experienced new talent that can maximize our company’s opportunities. We have several large orders for manufacturing facilities in California. And Vasari Energy will strengthen its presence in the growing U.S. commercial and industrial market. Here are some of the key developments Vasari Energy is taking into the new year.
Our industry got a resounding boost when Congress passed legislation in December that extends the Investment Tax Credit, ensuring that the solar marketplace can continue to grow stronger. The deal extends the credits through 2022, providing the certainty that our industry has been seeking. The bill keeps the ITC rate at its current rate of 30 percent through 2019, but it will drop to 26 percent in 2020, 22 percent in 2021 and 10 percent in 2022.
Bloomberg Finance estimates that the net gain for solar production of 18 additional gigawatts, providing a 56 percent boost to the industry over the next five years and $73 billion in new renewable energy investment. The bill also extended the Production Tax Credit, which provides a similar tax incentive for wind energy production.
This important development will help ensure that solar providers like Vasari Energy can be certain about the continued availability of the tax credit, allowing us to provide competitive rates for energy production through a marketplace where demand for renewable energy continues to surge.
Vasari Energy has hired Howard Nguyen to be the company’s director of marketing, bringing to our talent base the proven experience to expand our company’s brand recognition across a variety of marketplaces. Howard earned a master’s degree in information systems management and marketing.
His extensive level of instruction in this intricate field will help Vasari Energy improve how it collects, uses, distributes and, most importantly, analyzes market data. In addition to having the skills to promote and strengthen the company’s product and service development, Howard brings a keen understanding of the technology behind the latest marketing techniques.
The U.S. solar industry again showed impressive growth in 2015, as indications point to a continued rise in installation across all sectors in 2016. With a record of nearly 3 gigawatts installed in the 4th quarter, the U.S. has added more than 1 gigawatt of PV installation for eight consecutive quarters. According to forecasts by GTM Research, the U.S. solar PV market grew by 19 percent over 2014 with expectations for it to reach 7.4 gigawatts of installed capacity by the end of 2015.
Utility-scale PV installations continue to lead nationwide totals in 2015, though residential installations continued its growth to make up a larger segment of the overall market. There’s an estimated 18.7 gigawatts of utility PV projects that are in development, which is more than the amount of solar capacity the U.S. had online at the end of 2014. These are some of the many indications that the solar power industry is thriving and provides Vasari Energy with a prime opportunity to capitalize on the growing demand for renewable energy.
The recent agreement in Paris following a major U.N. Climate Change Conference creates further optimism for the solar industry. While the treaty has no binding agreements, it does encourage countries to reduce emissions through comprehensive reporting requirements. Countries aren’t required to declare how they’ll meet their carbon reduction targets, but Green Tech Media reports that solar power is figured to be a key element to most national carbon reduction strategies.
For the global solar market, the targets for non-fossil electricity generation by China and India are expected to be significant. Brazil is another nation where solar will likely be relied upon to meet compelling carbon reduction goals. The agreement also called for $100 billion in financing commitments to help developing countries achieve these goals.
Worldwide, solar installations today are 12 times greater than during the Copenhagen climate conference in 2009, while prices have dropped 80 percent since that time too, reports the Washington Post. And the positive developments at the Paris talks will only increase the number of markets available for solar technology.