So what’s driving the increase? A number of factors such as “utility-scale project completions, a strong residential market, effective policies and the plummeting price of solar panels.” But next year isn’t looking as rosy. The report is cautioning 2012 will bring ” substantial market uncertainty with financing and political risks, including the looming expiration of Section 1603 Treasury Program.” The Treasury’s 1603 program provides tax grants for solar projects, and it is currently due to expire on Dec 31st of this year, unless Congress extends it. Without an extension, the report warns that, “there will be a tax equity bottleneck for projects in 2012, leading to a possible slowdown in installations in late 2012 and into 2013.” Some of the growth in installations expected in the fourth quarter of this year (2011) will be due to developers rushing to complete projects in the fourth quarter in order to qualify for the 1603 grant. So even if the program does get extended, there could be a temporary slowdown in new installations in early 2012 due to the current uncertainty.