Gold Rush for U.S. Solar Incentives Coming to an End

BOSTON, Sept. 22, 2011 /PRNewswire/ -- Solar Renewable Energy Credits (SRECs) have created a gold rush of solar installations in U.S. states like Massachusetts, Ohio, Maryland, Pennsylvania and New Jersey. However, these self-correcting incentive programs may significantly dash future market growth expectations, says PHOTON Consulting's new U.S. solar market study, End of the Gold Rush: Crash of U.S. SREC Markets? According to the study, the rush to install solar power is leading to considerably more SREC supply than utilities are required to buy. This means many homeowners and businesses with solar installations may be left in the cold without the paybacks they anticipated, a situation already occurring in New Jersey and Pennsylvania.

"Suppliers, developers, installers, financiers and customers looking to lock in high returns in U.S. solar should move cautiously with their project risk appetite, SG&A and expansion plans in the Mid-Atlantic and Northeast markets," says PHOTON Consulting consultant and study co-author, Chris Bolman. "Imminent IRR risk in several of the country's largest solar segments doesn't quite support the straight-shot growth story a lot of market participants are looking for in U.S. solar."

PHOTON Consulting's End of the Gold Rush report details trends, market segmentation, customer economics and outlooks for key U.S. state SREC markets, including SREC prices, supply and demand from 2010 to 2014. Directed toward solar industry executives, financiers, third-party system-owners, suppliers, installers, load-serving entities, policy makers and customers, End of the Gold Rush is an informative, actionable reference for navigating the rapidly evolving U.S. solar market.

To view the executive summary, table of contents and purchase PHOTON Consulting's 2011 U.S. SREC market report, please visit http://www.photonconsulting.com/srec11.

ABOUT PHOTON Consulting, LLC

PHOTON Consulting is the largest dedicated solar energy research consultancy and is a leading supplier of in-depth research, management and strategic consulting services specific to the PV sector. With the deepest, broadest integrated coverage, PHOTON Consulting tracks the solar energy sector from feedstock to factory gate to end customer in every active and emerging market. PHOTON's solar consultants model company, geographic and industry projections from the outside in, crosschecking company announcements with providers and buyers. PHOTON's PV data consists of historical and five-year forward projections for price, volume, revenue, cost, operating profit, operating margin and demand for c-Si and thin film technologies. With the most extensive research and data in the sector, PHOTON Consulting is the source for research and analysis in solar power. For more information on PHOTON Consulting, please visit the Company's website: http://www.photonconsulting.com.

DISCLAIMER

PHOTON Consulting, LLC © 2011. All Rights Reserved. Disclaimer: The information and statistical data with this report have not been independently verified and we make no representations or warranty as to its accuracy, completeness or correctness. Any opinions or estimates reflect the judgment of PHOTON Consulting, LLC at the date of publication and are subject to change at any time without notice. This publication is for information purposes only and is not intended to provide professional, investment or any other type of advice or recommendation. PHOTON Consulting, LLC does not accept any responsibility and cannot be held liable for any person's use of or reliance on the information and opinions contained herein.

For more information on PHOTON Consulting, please contact Kati A. Enscoe at (+1) 617-904-0309 or via email at [email protected].

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SOURCE PHOTON Consulting, LLC