New Jersey is the top global location for investors in solar power but will soon begin to suffer the effects of dramatic oversupply, according to a report by Lux Research.
The Solar Demand Forecaster found that in Q2 2011, New Jersey offered the highest internal rate of return (IRR) out of 50 U.S. states, 31 Chinese provinces and semi-autonomous regions, and 75 countries and global regions. High Solar Renewable Energy Credit prices pushed New Jersey’s IRRs into the 40 percent range in 2010 and early 2011.
But the state will soon begin to suffer the effects of oversupply, forcing a collapse in prices with no floor in place. California – the largest market in the U.S. – will continue to see steady growth thanks to stability and visibility with step-down incentives and recent RPS (Renewable Portfolio Standards) legislation, Lux said…
Read More: NJ in Top Global Solar Spot – But Not for Long via Environmental Leader