Reuters June 8 - Estimates released Thursday show that the United States this year, the size of the installation of solar energy systems will drop 16%, due to meet the state utility companies to slow procurement of projects, and residential solar system sales more difficult.

A report by GTM Research and the Solar Energy Industries Association shows that following a substantial increase in 2016, the scale of the utility-scale solar market is expected to drop from over 10 billion watts last year to 8 billion watts this year.

The utility market accounts for about half of all solar systems. As utilities look for purchases before the expiration of their 30% federal tax benefits for solar projects by 2020, the market is expected to resume growth in 2019.

The report said solar prices fell further in the first quarter, falling below $ 1 a watt for the first time.

The residential solar market is expected to grow by 2% this year, well below the increase of 19% last year. Solar home installations in California dropped sharply, partly causing a 17% drop in the first quarter in the U.S. market. California accounted for 35% of the U.S. market for the quarter, the lowest since GTM began tracking the data in 2010.

Related reading: Customized Solar System,Mono Solar Panel.