Some states are spurring growth in solar panel installations in the U.S. with mandates and incentives for homeowners and businesses, a market information and advisory services firm says in a new report.
Domestic demand for solar panels is forecast to grow nearly 20 percent this year compared to 2012, the NPD Group says in its Solarbuzz North America PV Markets Quarterly released this week.
But, the report pointed out that just nine states will account for more than 85 percent of all U.S. solar panel demand this year.
Solar surge: Renewable power generation grew 7 percent in Texas last year
U.S. demand for solar PV, or photovoltaic, panels represents 12 percent of annual global demand, up from 5 percent three years ago, the firm says, adding that a big chunk of the latest growth is coming from California, Arizona, New Jersey and North Carolina. Texas and New Mexico also are among the states driving growth.
The reason? NPD Group cited mandates in some states that require solar power to meet certain levels of total energy production and incentives that allow homeowners and businesses to install solar panels with low upfront costs.
Figures released last month by the Electric Reliability Council of Texas, which operates the power grid for most of the state, show that electric generation from renewable sources increased 7 percent in 2012 in the state. Solar power had the largest rate of growth, based on the data.
In Houston, solar power advocates reported in March that the city has come a long way in encouraging homeowners to go solar, but businesses are lagging behind because tax and financial incentives are insufficient. According to data they released, in 2012, there were 557 solar installations on the books for residential customers, compared to only 54 installations for businesses and other non-residential customers.
Government incentives: Advocates pushing solar for Houston businesses
According to the NPD Group analysis, the solar power momentum could turn, depending on any policy changes in the small number of states that account for much of the solar panel demand in the U.S.
NP Solarbuzz is part of the NPD Group. It offers upstream and downstream photovoltaic market quarterly reports and other solar energy analysis.
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Solar plane leaves Texas for St. Louis
People look at the second Solar Impulse 2 solar-powered plane to be used for a round-the-world voyage next year, during its unveiling in Switzerland on April 9, 2014.
People look at the second Solar Impulse 2 solar-powered plane to be used for a round-the-world voyage next year, during its unveiling in Switzerland on April 9, 2014.
Photo: FABRICE COFFRINI / AFP/Getty Images
In 2015, the Solar Impulse 2 is due to make the first round-the-world solar flight, day and night without any fuel. This revolutionary single-seater aircraft made of carbon fibre has a 236 ft wingspan -- larger than that of the Boeing 747-8I -- and weighs as much as a car (5,000 pounds). less
In 2015, the Solar Impulse 2 is due to make the first round-the-world solar flight, day and night without any fuel. This revolutionary single-seater aircraft made of carbon fibre has a 236 ft wingspan -- ... more
Photo: Jean Revillard / Associated Press
The Solar Impulse flies over Switzerland in 2011.
The Solar Impulse flies over Switzerland in 2011.
Photo: Jean Revillard / Solar Impulse
The Solar Impulse flies over mountains in Switzerland in 2010.
The Solar Impulse flies over mountains in Switzerland in 2010.
Photo: Jean Revillard / Solar Impulse
People look at the Solar Impulse 2 solar-powered plane to be used for a round-the-world voyage, during its unveiling in Switzerland on April 9, 2014.
People look at the Solar Impulse 2 solar-powered plane to be used for a round-the-world voyage, during its unveiling in Switzerland on April 9, 2014.
Photo: FABRICE COFFRINI / AFP/Getty Images
People look at the Solar Impulse 2 solar-powered plane to be used for a round-the-world voyage next year, during its unveiling in Payerne, on April 9, 2014.
People look at the Solar Impulse 2 solar-powered plane to be used for a round-the-world voyage next year, during its unveiling in Payerne, on April 9, 2014.
Photo: FABRICE COFFRINI / AFP/Getty Images
Solar Impulse Godfather Prince Albert of Monaco speaks in front of the new experimental aircraft "Solar Impulse 2" during the official presentation at the airbase in Payerne, Switzerland on Wednesday, April 9, 2014. less
Solar Impulse Godfather Prince Albert of Monaco speaks in front of the new experimental aircraft "Solar Impulse 2" during the official presentation at the airbase in Payerne, Switzerland on Wednesday, April ... more
Photo: Laurent Gillieron / Associated Press
The Solar Impulse prepares for takeoff to Rabat, Morocco in 2012.
The Solar Impulse prepares for takeoff to Rabat, Morocco in 2012.
Photo: Jean Revillard / Solar Impulse
The Solar Impulse flies over mountains in Switzerland in 2010.
The Solar Impulse flies over mountains in Switzerland in 2010.
Photo: Jean Revillard / Solar Impulse
Solar Impulse's CEO and pilot Andre Borschberg (right) and Solar Impulse's founder, chairman and pilot Bertrand Piccard (left) speak in front of the new experimental aircraft "Solar Impulse 2", during the official unveiling at the airbase in Payerne, Switzerland, Wednesday, April 9, 2014. less
Solar Impulse's CEO and pilot Andre Borschberg (right) and Solar Impulse's founder, chairman and pilot Bertrand Piccard (left) speak in front of the new experimental aircraft "Solar Impulse 2", during the ... more
Photo: Laurent Gillieron / Associated Press
Swiss pilots Bertrand Piccard (left) and Andre Borschberg, who flew the Solar Impulse experimental solar-powered plane on a transcontinental trip, pose in front of their second solar-powered plane, which they aim to take on a round-the-world voyage next year. less
Swiss pilots Bertrand Piccard (left) and Andre Borschberg, who flew the Solar Impulse experimental solar-powered plane on a transcontinental trip, pose in front of their second solar-powered plane, which they ... more
Photo: FABRICE COFFRINI / AFP/Getty Images
Swiss pioneers Bertrand Piccard (left) and Andre Borschberg are the founders, pilots and life force behind Solar Impulse 2. In 2015 the plane is due to make the first round-the-world solar flight, day and night without any fuel. This revolutionary single-seater aircraft made of carbon fibre has a 236 ft (72 meter) wingspan (larger than that of the Boeing 747-8I) and weighs the same as a car (5,000 lbs. or 2,300 Kg). The 17,000 solar cell, built into the wing, supply four electric motors (17.5 CV each). During the day, the solar cells recharge lithium batteries weighing 2077 lbs. (633 Kg), which allow the aircraft to fly at night. Each pilot will fly for 4-5 days. They will need 2.4 kg of food, 2.5 l of water and 1l of sports drink per day: additional weight that needs to be carefully calculated by the Solar Impulse team. In case of an emergency, the pilot seat has an integrated parachute and life raft. (Jean Revillard for Solar Impulse 2 via AP Images) less
Swiss pioneers Bertrand Piccard (left) and Andre Borschberg are the founders, pilots and life force behind Solar Impulse 2. In 2015 the plane is due to make the first round-the-world solar flight, day and ... more
Photo: Jean Revillard / Associated Press
The Solar Impulse flies near the Eiffel Tower in Paris in 2011.
The Solar Impulse flies near the Eiffel Tower in Paris in 2011.
Photo: Jean Revillard / Solar Impulse
Prince Albert II of Monaco delivers a speech during the unveiling by Swiss pilots Bertrand Piccard and Andre Borschberg of the second Solar Impulse solar-powered plane, the HB-SIB, which they aim to take on a round-the-world voyage next year. AFP PHOTO / FABRICE COFFRINIFABRICE COFFRINI/AFP/Getty Images less
Prince Albert II of Monaco delivers a speech during the unveiling by Swiss pilots Bertrand Piccard and Andre Borschberg of the second Solar Impulse solar-powered plane, the HB-SIB, which they aim to take on a ... more
Photo: FABRICE COFFRINI / AFP/Getty Images
The Solar Impulse solar-powered plane is displayed in a hangar at Moffett Field on March 28, 2013 in Mountain View, California. The Solar Impulse has already made international and intercontinental flights in Europe and Africa. less
The Solar Impulse solar-powered plane is displayed in a hangar at Moffett Field on March 28, 2013 in Mountain View, California. The Solar Impulse has already made international and intercontinental flights in ... more
Photo: Justin Sullivan / Getty Images
The Solar Impulse solar-powered plane is displayed in a hangar at Moffett Field in March 2013 in Mountain View, California. The Solar Impulse has already made international and intercontinental flights in Europe and Africa. less
The Solar Impulse solar-powered plane is displayed in a hangar at Moffett Field in March 2013 in Mountain View, California. The Solar Impulse has already made international and intercontinental flights in ... more
Photo: Justin Sullivan / Getty Images
Solar panels sit on the wing of the Solar Impulse plane at Moffett Field in Mountain View, California. The Solar Impulse has already made international and intercontinental flights in Europe and Africa.
Solar panels sit on the wing of the Solar Impulse plane at Moffett Field in Mountain View, California. The Solar Impulse has already made international and intercontinental flights in Europe and Africa.
Photo: Justin Sullivan / Getty Images
The Solar Impulse solar-powered plane is displayed in a hangar at Moffett Field on March 28, 2013 in Mountain View, California. The Solar Impulse has already made international and intercontinental flights in Europe and Africa. less
The Solar Impulse solar-powered plane is displayed in a hangar at Moffett Field on March 28, 2013 in Mountain View, California. The Solar Impulse has already made international and intercontinental flights in ... more
Photo: Justin Sullivan / Getty Images
The Solar Impulse solar powered plane is displayed in a hangar at Moffett Field on March 28, 2013 in Mountain View, California. The Solar Impulse has already made international and intercontinental flights in Europe and Africa. less
The Solar Impulse solar powered plane is displayed in a hangar at Moffett Field on March 28, 2013 in Mountain View, California. The Solar Impulse has already made international and intercontinental flights in ... more
Photo: Justin Sullivan / Getty Images
Solar Impulse Chairman and pilot Bertrand Piccard speaks during a press conference at Moffett Field on March 28, 2013 in Mountain View, California. The Solar Impulse has already made international and intercontinental flights in Europe and Africa. less
Solar Impulse Chairman and pilot Bertrand Piccard speaks during a press conference at Moffett Field on March 28, 2013 in Mountain View, California. The Solar Impulse has already made international and ... more
Photo: Justin Sullivan / Getty Images
Solar Impulse founder and pilot Bertrand Piccard addresses a press conference at the NASA Ames Research Center in Mountain View, California on Thursday, March 28, 2013. The Solar Impulse project aims to fly an aircraft around the world using only solar energy. less
Solar Impulse founder and pilot Bertrand Piccard addresses a press conference at the NASA Ames Research Center in Mountain View, California on Thursday, March 28, 2013. The Solar Impulse project aims to fly an ... more
Photo: JOSH EDELSON / AFP/Getty Images
The Solar Impulse plane takes off on a multi-city trip across the United States from Moffett Field NASA Ames Research Center in Mountain View, Calif., Friday, May 3, 2013. Solar Impulse, considered the world's most advanced solar-powered plane, will stop for seven to 10 days at major airports in each city, so the pilots can display and discuss the aircraft with reporters, students, engineers and aviation fans. It plans to reach New York's Kennedy Airport in early July — without using a drop of fuel, its creators said. less
The Solar Impulse plane takes off on a multi-city trip across the United States from Moffett Field NASA Ames Research Center in Mountain View, Calif., Friday, May 3, 2013. Solar Impulse, considered the world's ... more
Photo: Tony Avelar
ABB is announcing that it is a new sponsor of Solar Impulse, a solar plane pioneer, and that Solar Impulse will be rolling out a new solar plane on Wednesday. With this plane, these record-setting investors are setting out to circumnavigate the globe, flying night and day, with all power generated by sunlight. (PRNewsFoto/ABB) less
ABB is announcing that it is a new sponsor of Solar Impulse, a solar plane pioneer, and that Solar Impulse will be rolling out a new solar plane on Wednesday. With this plane, these record-setting investors ... more
Photo: Associated Press
The Solar Impulse plane sits on the tarmac early in the morning before takes off on a multi-city trip across the United States from Moffett Field NASA Ames Research Center in Mountain View, Calif., Friday, May 3, 2013. Solar Impulse, considered the world's most advanced solar-powered plane, will stop for seven to 10 days at major airports in each city, so the pilots can display and discuss the aircraft with reporters, students, engineers and aviation fans. It plans to reach New York's Kennedy Airport in early July — without using a drop of fuel, its creators said. less
The Solar Impulse plane sits on the tarmac early in the morning before takes off on a multi-city trip across the United States from Moffett Field NASA Ames Research Center in Mountain View, Calif., Friday, May ... more
Photo: Tony Avelar
The Solar Impulse pilot Bertrand Piccard, left, enters the cockpit before taking off to embark on a multi-city trip across the United States from Moffett Field NASA Ames Research Center in Mountain View, Calif., Friday, May 3, 2013. Solar Impulse, considered the world's most advanced solar-powered plane, will stop for seven to 10 days at major airports in each city, so the pilots can display and discuss the aircraft with reporters, students, engineers and aviation fans. It plans to reach New York's Kennedy Airport in early July — without using a drop of fuel, its creators said. less
The Solar Impulse pilot Bertrand Piccard, left, enters the cockpit before taking off to embark on a multi-city trip across the United States from Moffett Field NASA Ames Research Center in Mountain View, ... more
Photo: Tony Avelar
Pilots Bertrand Piccard, right, and André Borschberg, left shake hands before the Solar Impulse plane takes off to embark on a multi-city trip across the United States from Moffett Field NASA Ames Research Center in Mountain View, Calif., Friday, May 3, 2013. Solar Impulse, considered the world's most advanced solar-powered plane, will stop for seven to 10 days at major airports in each city, so the pilots can display and discuss the aircraft with reporters, students, engineers and aviation fans. It plans to reach New York's Kennedy Airport in early July — without using a drop of fuel, its creators said. less
Pilots Bertrand Piccard, right, and André Borschberg, left shake hands before the Solar Impulse plane takes off to embark on a multi-city trip across the United States from Moffett Field NASA Ames Research ... more
Photo: Tony Avelar
Bertrand Piccard, pilot of the Solar Impulse plane, speaks to reporters before taking off on a multi-city trip across the United States from Moffett Field NASA Ames Research Center in Mountain View, Calif., Friday, May 3, 2013. Solar Impulse, considered the world's most advanced solar-powered plane, will stop for seven to 10 days at major airports in each city, so the pilots can display and discuss the aircraft with reporters, students, engineers and aviation fans. It plans to reach New York's Kennedy Airport in early July — without using a drop of fuel, its creators said. Photo: less
Bertrand Piccard, pilot of the Solar Impulse plane, speaks to reporters before taking off on a multi-city trip across the United States from Moffett Field NASA Ames Research Center in Mountain View, Calif., ... more
Photo: Tony Avelar
Bertrand Piccard, pilot of the Solar Impulse plane, takes off on a multi-city trip across the United States from Moffett Field NASA Ames Research Center in Mountain View, Calif., Friday, May 3, 2013. Solar Impulse, considered the world's most advanced solar-powered plane, will stop for seven to 10 days at major airports in each city, so the pilots can display and discuss the aircraft with reporters, students, engineers and aviation fans. It plans to reach New York's Kennedy Airport in early July — without using a drop of fuel, its creators said. less
Bertrand Piccard, pilot of the Solar Impulse plane, takes off on a multi-city trip across the United States from Moffett Field NASA Ames Research Center in Mountain View, Calif., Friday, May 3, 2013. Solar ... more
Photo: Tony Avelar
The Solar Impulse is displayed in a hangar at Moffett Field on March 28, 2013 in Mountain View, Calif.
The Solar Impulse is displayed in a hangar at Moffett Field on March 28, 2013 in Mountain View, Calif.
Photo: Justin Sullivan / Getty Images
The Solar Impulse has already made international and intercontinental flights in Europe and Africa.
The Solar Impulse has already made international and intercontinental flights in Europe and Africa.
Photo: Justin Sullivan / Getty Images
Solar panels sit on the wing of the Solar Impulse at Moffett Field on March 28, 2013 in Mountain View, Calif.
Solar panels sit on the wing of the Solar Impulse at Moffett Field on March 28, 2013 in Mountain View, Calif.
Photo: Justin Sullivan / Getty Images
The Solar Impulse will begin test flights around the San Francisco Bay Area ahead of a planned flight across the United States later this year.
The Solar Impulse will begin test flights around the San Francisco Bay Area ahead of a planned flight across the United States later this year.
Photo: Justin Sullivan / Getty Images
The media and officials get a closer look at the all-solar plane at Moffett Field in Mountain View, Calif.
The media and officials get a closer look at the all-solar plane at Moffett Field in Mountain View, Calif.
Photo: Justin Sullivan / Getty Images
Pilot Bertrand Piccard speaks during a press conference Thursday in California.
Pilot Bertrand Piccard speaks during a press conference Thursday in California.
Photo: Justin Sullivan / Getty Images
Pilot Bertrand Piccard plans to stop over in Dallas during this spring's cross-country flight.
Pilot Bertrand Piccard plans to stop over in Dallas during this spring's cross-country flight.
Photo: Justin Sullivan / Getty Images
Solar Impulse CEO and pilot Andre Borschberg, left, and chairman Bertrand Piccard, cast shadows on a poster during Thursday's press conference.
Solar Impulse CEO and pilot Andre Borschberg, left, and chairman Bertrand Piccard, cast shadows on a poster during Thursday's press conference.
Photo: Justin Sullivan / Getty Images
The solar impulse begins evening flight as the sun sets over Switzerland in 2010.
The solar impulse begins evening flight as the sun sets over Switzerland in 2010.
Photo: Fabrice Coffrini / Solar Impulse
The Solar Impulse prepares for a second-attempt flight to Ouarzazate, Morocco in 2012.
The Solar Impulse prepares for a second-attempt flight to Ouarzazate, Morocco in 2012.
Photo: Jean Revillard / Solar Impulse
Solar Impulse in Switzerland in 2011.
Solar Impulse in Switzerland in 2011.
Photo: Fred Merz / Solar Impulse
Pilots are surrounded by media after a successful night flight in the Solar Impulse in July 2010 in Switzerland
Pilots are surrounded by media after a successful night flight in the Solar Impulse in July 2010 in Switzerland
Photo: Stéphane Gros / Solar Impulse
The cockpit of the Solar Impulse.
The cockpit of the Solar Impulse.
Photo: Jean Revillard / Solar Impulse
Engineers disassemble a wing of the Solar Impulse in Switzerland in 2013.
Engineers disassemble a wing of the Solar Impulse in Switzerland in 2013.
Photo: Jean Revillard / Solar Impulse
A wing of the Solar Impulse is loaded onto a Boeing 747 in Payerne, Switzerland in February 2013. The plane was heading to California to prepare for a cross-country flight this spring.
A wing of the Solar Impulse is loaded onto a Boeing 747 in Payerne, Switzerland in February 2013. The plane was heading to California to prepare for a cross-country flight this spring.
Photo: Niels Ackermann / Solar Impulse
Engineers position a wing of the Solar Impulse inside the belly of Boeing 747 in Payerne, Switzerland in February 2013. The plane was flown to California, where it is now preparing to make a cross-country flight. less
Engineers position a wing of the Solar Impulse inside the belly of Boeing 747 in Payerne, Switzerland in February 2013. The plane was flown to California, where it is now preparing to make a cross-country ... more
Photo: Niels Ackermann / Solar Impulse
Engineers work on the wing of the Solar Impulse in Switzerland in 2009.
Engineers work on the wing of the Solar Impulse in Switzerland in 2009.
Photo: Stéphane Gros / Solar Impulse
An engineer works on the solar cells for the Solar Impulse in Switzerland in 2008.
An engineer works on the solar cells for the Solar Impulse in Switzerland in 2008.
Photo: Stéphane Gros / Solar Impulse
Engineers test the Solar Impulse plane in Switzerland in 2010.
Engineers test the Solar Impulse plane in Switzerland in 2010.
Photo: Stéphane Gros / Solar Impulse
An engine used for the Solar Impulse plane.
An engine used for the Solar Impulse plane.
Photo: Stéphane Gros / Solar Impulse
An engineer works on the propeller of the Solar Impulse in Switzerland in 2009.
An engineer works on the propeller of the Solar Impulse in Switzerland in 2009.
Photo: Stéphane Gros / Solar Impulse
Solar Impulse at the Brussels Airport in 2011.
Solar Impulse at the Brussels Airport in 2011.
Photo: Jean Revillard / Solar Impulse
The Solar Impulse in Fuselage, Switzerland in 2009.
The Solar Impulse in Fuselage, Switzerland in 2009.
Photo: Solar Impulse
Pilot Andre Borschberg is welcomed back on the ground after a successful 26-hour non-stop flight over Switzerland in July 2010.
Pilot Andre Borschberg is welcomed back on the ground after a successful 26-hour non-stop flight over Switzerland in July 2010.
Photo: Dominique Favre / Solar Impulse
Pilot Andre Borschberg is welcomed back on the ground after a successful 26-hour non-stop flight over Switzerland in July 2010.
Pilot Andre Borschberg is welcomed back on the ground after a successful 26-hour non-stop flight over Switzerland in July 2010.
Photo: Solar Impulse
Bertrand Piccard in the cockpit before take-off on 2012 flight from Rabat, Morocco to Madrid, Spain.
Bertrand Piccard in the cockpit before take-off on 2012 flight from Rabat, Morocco to Madrid, Spain.
Photo: Jean Revillard / Solar Impulse
The Solar Impulse team welcomes back the plane in Payerne, Switzerland in July 2011.
The Solar Impulse team welcomes back the plane in Payerne, Switzerland in July 2011.
Photo: Jean Revillard / Solar Impulse
The Solar Impulse flies over Ouarzazate, Morocco in 2012.
The Solar Impulse flies over Ouarzazate, Morocco in 2012.
Photo: Jean Revillard / Solar Impulse
Pilot Bertrand Piccard crosses the Strait of Gibraltar in 2012.
Pilot Bertrand Piccard crosses the Strait of Gibraltar in 2012.
Photo: Jean Revillard / Solar Impulse
