This post is one in a series of feature stories on trends shaping advanced energy markets in the U.S. and around the world, drawn from Advanced Energy Now 2016 Market Report, which was prepared for AEE by Navigant Research.

In a breakthrough year for the U.S. Solar PV industry, nearly 1 MW – enough to power more than 160 homes – was installed almost every hour in 2015. The cumulative solar PV installed capacity in the United States has now surpassed 27 GW. Revenue generated from installations of solar PV – across residential, commercial, industrial markets, and large utility power plants – reached an estimated $22.6 billion in 2015, a 21% increase over 2014, and growth of 174% since 2011. Plus, the industry got an extension of the federal investment tax credit, with a gradual phase-down, through 2023.

The combination of technology cost reductions, renewable energy targets at the state level, business model innovation, and federal tax policy has made the United States one of the top three solar PV markets worldwide. The challenge to the traditional utility business model, particularly from on-site solar, continues to result in skirmishes at utility commissions across the country. Central to the debate is how much distributed solar should be allowed to be net metered (sold back to the grid), at what price, and how costs are allocated across ratepayers. These battles notwithstanding, Navigant Research forecasts more than 70 GW of new solar capacity additions, both large-scale and distributed, between 2016 and 2022, potentially bringing the cumulative installations above 100 GW, four times the current installed base.