The graph below shows the amount of solar installed in TVA’s residential and small commercial solar program, Green Power Providers, since 2009. You can see that solar installs have been falling since 2012 and only 1.5 MW of solar was installed in the first half of this year!
Solar installations sky rocketed in 2011, and TVA began cutting back the program. The market withstood the drops in the incentive payments since solar costs were falling significantly as well. However, system size limits and program caps have resulted in a program that undercuts the solar market.
Long story short: The demand for solar is higher than TVA’s 10 MW cap, and the extremely low cap has nearly killed the region’s solar industry. Though capacity is set at 10 MW, it is highly unlikely that 10 MW will actually be built in 2014 due to TVA’s approval process. We estimate 5-6 MW of solar will be installed in 2014.