Why this new solar market could be set to explode
Right now, there’s an odd thing about solar in the United States (and elsewhere). It’s either really big — at the scale of massive solar farms with the capacity to generate tens or hundreds of millions of watts of electricity — or pretty small: on your rooftop, with maybe as little as 5 kilowatts, or thousand watts, of capacity. Solar has been growing extremely fast in these existing markets. But more and more, analysts say, there’s a middle-range market whose large potential is just becoming clear. It’s bigger than individual rooftop installations but smaller than vast solar farms. And it’s for a much broader and diverse range of people than fairly wealthy, suburban homeowners. It’s called community or “shared” solar, meaning that multiple people get electricity from a mid-sized solar array on the top of, say, a condo building, or in a lot centered in a community, or perhaps an array or resource designated by their power company. This means people living in more densely populated cities, who may not own the roofs over their heads or who may not have the best credit, could also participate in the solar wave — without having to purchase or finance panels themselves.
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As of 2015, only a tiny sliver of all solar capacity in the United States fit into this category. But according to a new report from the energy think tank the Rocky Mountain Institute, the potential for community solar to expand is vast. The group said that as much as 30 gigawatts (or billion watts) of solar capacity, at the extreme upper end, could be added in this space by the year 2020, which would more than double all currently installed solar capacity in the United States. Granted, that also requires a redefinition of what community solar is — the group calls it “community-scale” solar to denote mid-sized arrays, whether owned by a group of individuals or by a power company.
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Why this new solar market could be set to explode
