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ARTICLE · 21 MAY 2013

Distributed Solar Generation Poised To Surge In 2013 And Beyond

Jones Day
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In 2012, U.S. installations of photovoltaic solar generation reached 3,313 megawatts, which represents an industry record.

United StatesEnergy and Natural Resources
Michael Gibbs
Michael Gibbs
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In 2012, U.S. installations of photovoltaic ("PV") solar generation reached 3,313 megawatts, an industry record and an increase of 76 percent over 2011, according to a recent announcement by GTM Research and the Solar Energy Industries Association. The number of solar installations in the U.S. in 2012 exceeded 90,000, and the rent payment schedule included 83,000 installations of distributed solar generation in the residential market. GTM Research and SEIA expect that the residential market for solar generation will surge in 2013 and beyond, as third-party solar financing options become more widely available.

Third-party financing of residential PV systems is typically provided through either a power purchase agreement ("PPA") or a lease. In PPA financing, a customer pays a specified rate to a solar developer/installer for the electricity generated by a PV system installed at no up-front cost to the customer on the rooftop of the customer's home or elsewhere on

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