Meta Platforms is on top of the SEIA list of US corporate solar energy procurers with over 5 GW capacity
Majorly, the push is coming from technology companies as they seek energy supply for growing data center demand
IRA remains the major driver for their interest in solar, but permitting and interconnection delays playing spoilsport
The next big wave of renewable energy integration will be the addition of on-site and off-site batteries
At the end of March 2024, corporates in the US had installed record levels of solar PV with around 40 GW on-site and off-site capacity along with more than 1.8 GWh storage capacity, according to the Solar Means Business 2024 Report of Solar Energy Industries Association (SEIA).
In terms of capacity, Meta Platforms leads by solar capacity with 5.17 GW, followed by Amazon’s 4.68 GW and Google’s 2.59 GW. Apple comes next having procured 1.15 GW, while Walmart procured 860 MW. The top 10 US corporations account for 16.8 GW installed solar PV capacity.
Solar PV procurement in the US is driven by technology firms as they try to keep up pace with data center growth and the use of artificial intelligence (AI), according to the 10th edition of the report.
“While data center load from large tech firms continues to be a large driver of new energy demand and corporate solar projects, we are seeing a diverse slate of companies turn to renewable energy procurement to help lower their carbon footprint, reduce their energy costs, and reduce their exposure to local energy market volatility,” reads the report.
Drivers
SEIA analysts cite the Inflation Reduction Act (IRA) as the major reason for US corporates to expand their renewable energy procurement activities. Nevertheless, this segment continues to face tailwinds of high or volatile prices, and budget challenges with high cost of capital as an impediment in procuring solar.
Permitting and interconnection delays are the other top challenges that have slowed growth in both on-site and off-site solar markets.
What continues to drive their interest in the field though are factors like interconnection reform, new community solar legislation, and improved marketplaces for tax credit monetization. As more and more companies educate themselves about procuring renewable energy, they are also exploring novel procurement strategies to manage their energy needs.
Storage
This edition of the SEIA report for the 1st time tracks energy storage users among corporates. Businesses are also increasingly adding a battery storage component, as it becomes a ‘crucial element’ of the grid mix. Google leads with 312 MW AC battery storage capacity. The tech giant has 25% more battery storage installed than the rest of the top 10 combined, notes the report.
In 2023, over 6.5 GW AC of grid-scale battery storage capacity was commissioned, and 2024 is likely to be another major growth year for this technology.
“As companies start diversifying into both on-site and off-site solar projects, the next big wave of renewable energy integration will be the addition of on-site and off-site batteries,” predicts SEIA.
It cites the example of Kaiser Permanente, which uses batteries to power microgrids at its medical centers to manage in the event of power outages.
Overall, the top 10 corporate buyers of solar in the US currently hold a pipeline of 27.8 GW DC, including Amazon which alone maintains a pipeline of 13.6 GW DC of solar in development. Meta and Google hold 5.9 GW DC and 5.7 GW DC in the pipeline, respectively. “If all reported pipeline capacity comes online, 12% of new solar capacity installed over the next five years would have a corporate offtaker,” it adds.
However, SEIA points out that this volume could be much larger since not all corporations disclose their pending or in-progress projects.
The complete report is available on SEIA’s website for free download.
According to the last edition of this report published in 2022, SEIA counted close to 19 GW of corporate solar power capacity installed in the country till June 2022 (see US Corporate Solar Contracted Capacity Now Nearly 19 GW Strong).