In a record year for the United States, 10 GW of utility-scale solar reached commercial operation date in 2020. The projects accounted for nearly 60% of all new PV capacity added last year.
Declining costs have been a chief driver of utility-scale solar growth, which has extended its reach beyond the sunny southwest to more northerly regions. Prices negotiated through power purchase agreements (PPAs) have fallen to new lows, and solar PPAs are now less costly than wind in many regions. As solar increases its share of the capacity on the grid, its wholesale value reduces.
However, this observed decline in value has kept pace with declining prices, meaning that solar has remained competitive. The growth prospects for utility-scale solar look strong, with interconnection queues adding 170 GW last year alone.
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