2. Southern California Edison 194.6 MW (Annual capacity in megawatts)
Southern California Edison (SCE) came in second, up from 4th place in the previous year, integrating 195 MW. A majority of SCE’s solar energy portfolio came from more than 15,000 distributed projects representing more than 167 MW of capacity. This is nearly equal to PG&E’s share of the distributed market segment in 2012. The growth of distributed solar in key states can be attributed to the increasing trend of third-party solar contracting and the continued declining costs of photovoltaic, which compensated for a downward trend in state and utility solar incentive levels and availability. Upwards of 75 percent of residential homes used a third-party solar provider in California last year, driving new distributed market growth, even while the California Solar Initiative (CSI) incentive programs were largely concluding.