Navigant Research: U.S. Expected to Deploy 77.3 GW of Distributed Renewables by 2025


A report from Navigant Research forecasts the deployment of 77.3 GW of distributed renewables between 2016 and 2025, with solar power driving the majority of capacity additions. The report examines the U.S. market for distributed renewables, with forecasts by state for photovoltaic (PV) solar, distributed wind, and biogas.

Distributed renewables technologies have unique characteristics that can act as generation and/or load control on the grid, yet they each represent a dynamic resource that is challenging the industry’s prevailing business models and operating procedures, Navigant said.

“The deployment of distributed renewables in the U.S. is heavily concentrated in a few states, and the top 10 markets are expected to deploy 89 percent of new capacity,” said Roberto Rodriguez Labastida, senior research analyst with Navigant Research. “As distributed renewables continue to evolve from their identity as fringe generation resources to become the workhorse of the power sector, it is important that all electricity sector stakeholders execute a new strategy around renewables in order to remain relevant.”

The report notes that policy continues to affect deployment of distributed renewables in the country. Tax credits and renewables mandates, which have served to reduce the upfront costs of renewables and increase the value of renewably produced electricity, will likely be phased out. Additionally, Navigant says, policies like net metering may be altered to ensure they reflect the true value of distributed renewables.

A free executive summary of the U.S. Distributed Renewables Deployment Forecast can be downloaded here.

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