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According to a report by the Solar Energy Industries Association and Wood McKenzie on Tuesday, the solar industry is among the worst hit by high prices in many sectors.
During this time, prices in each solar cell rose from quarter to year and year to year. A.D. This is the first time since the energy consultant began monitoring prices in 2014 that housing, commercial and utility costs have increased simultaneously.
The most significant expenditures are the leap on raw materials, including steel and aluminum. High shipping costs also played a role. According to the report, many companies will have enough stocks to see by the end of the year, with most of the impact set to begin in 2022.
Overall, the United States added 5.7 megawatts of solar power during this period, the record for the second quarter. The epidemic is hurting the industry, which is expected to hit 45% by 2020.
“The solar industry will continue to show strong quarterly growth, and demand is high in every segment,” said Michael McDais, chief solar engineer at Wood McKenzie. But the industry is now facing many challenges. … Addressing these challenges will be crucial to expanding the industry’s growth and achieving clean energy goals.
According to a separate report from Restad Energy, world solar panel prices have increased by 16% this year compared to 2020 levels. Total costs, including labor costs, will reach 12% by 2021. “This could hurt the vision for the next few years,” Restad said.
In the United States, the industry is also experiencing regulatory reforms and policy instability. In June, the US Customs and Border Protection issued an order banning the silicon-based products from the Hoshin Silicon Industry in China’s Xinjiang Province due to forced labor. Separately, some US-based companies have petitioned the Department of Commerce to extend tariffs on imported solar products to Malaysia, Vietnam and Thailand.
All of this comes as lawmakers debated a $ 3.5 trillion spending package, which would be of great benefit to the solar industry.
“The industry really needs it,” said SEG president and CEO Abig Ross Hopper. She believes the most important provision is the extension of the investment tax credit, which has contributed significantly to the growth of the sun. The ITC, which was extended in December 2020, is included in the US Work Plan, but is not included in the final version of the infrastructure bill.
Hopper said domestic trade support is another priority for the business group, adding that incentives around the US-based product could alleviate some of the supply chain challenges currently facing the solar industry.
Rising costs and a lack of transparency for the industry could hurt President Joe Biden’s extreme climate goals. According to the Department of Energy, solar costs have dropped by more than 70% over the past decade, but they need to decline further to increase adoption.
The department on Wednesday released a plan outlining how 3% of solar power will go to 2050, but without support policies it would be impossible. The study found that the United States will have a 15-watt solar record by 2020.
If the US Climate Goals are met, the annual load from 2025 to 2030 should double every year until 2025.
“This is a crucial time for our climate, but rising prices, supply chain disruptions and a series of trade hazards are threatening our grid capacity,” Hopper said.