New solar capacity in the U.S. is expected to grow by 33% in 2020

New solar installations in the U.
S.
will increase by a third this year, according to a report released Thursday by the Solar Energy Industry Association and energy research firm Wood Mackenzie, as utility demand for carbon-free energy soars, outpacing the sharp drop
in orders for home and business rooftop systems due to the coronavirus pandemic.

The solar industry expects to install 18 gigawatts of electricity this year, enough to power
3 million homes, the report said.
That's 9%
lower than forecast before the virus outbreak caused construction delays, weak consumer demand and tighter access to finance.

But utility-scale solar is on track for a record year, with 14.
4 GW of new capacity expected by 2020
, the report said.
National renewable energy targets and low cost of solar energy are supporting strong demand
in the sector.

However, risks to the medium to long-term growth of the sector include: increased cost of capital due to market weakness, reduced demand from commercial and industrial customers suffering from financial difficulties, and delays
in utility procurement programs.

The American Solar Energy Association SEIA noted that its five-year solar installation outlook was lowered by about 3 percent to 113 GW
due to "considerable uncertainty" caused by the pandemic.

In the first quarter of this year, solar accounted for 40 percent of new capacity added in the United States, ahead of natural gas and wind
.
As the lockdown slowed down construction and sales, it hit the smaller residential and commercial systems market
hard.
Home installations are expected to fall 25 percent this year and return to a 26 percent
rise next year, the report said.
However, it will be several years before the industry reaches the installed levels predicted before the outbreak
.

The report also said installations in non-residential areas, including corporate rooftop systems, will fall by 38 percent
this year.