US solar installations shrink this year due to inflation

© . An array of solar panels can be seen in the desert near Victorville, California, US March 28, 2018. REUTERS/Lucy Nicholson/Files () – US solar installations rose 19% to hit a record last year, but new capacity will pour in 2022, as property developers grapple with cost inflation and shipping delays, according to an industry forecast released Thursday. The subdued outlook comes as the industry aggressively lobbies Congress to provide subsidies that have been critical to its growth. If solar tax credits are not extended, the report from energy research firm Wood Mackenzie and the industrial trade group Solar Energy Industries Association warned that the nation will fail to meet President Joe Biden’s goal of decarbonizing the electricity sector by 2035. Solar accounted for nearly half of all new generating capacity in the US last year thanks to strong clean energy demand from utilities, homeowners and businesses, the report said. In total, the industry installed 23.6 gigawatts of projects, nearly three-quarters of which were large installations for utilities and other large customers. But that market segment is expected to fall by 14% next year as developers cancel or delay projects due to increased costs and delivery constraints due to the coronavirus pandemic. The cost of solar projects has risen 18% in the past year, the report said, a significant turning point for an industry that has experienced dramatic price drops over the past decade, allowing it to compete with fossil fuel-powered projects. A 30% tax credit for solar projects, which the industry wants Congress to hold for 10 years, would expand the industry’s capacity to 700 gigawatts by 2032, compared to 464 GW without those incentives, the report said. Texas was the top state for new solar installations in 2021, followed by California, Florida, Virginia and Georgia. Disclaimer: Fusion Media would like to remind you that the data on this website is not necessarily real-time or accurate. All CFDs (Stocks, Indices, Futures) and Forex prices are not provided by exchanges but rather by market makers, and therefore prices may not be accurate and may differ from the actual market price meaning prices are indicative and not suitable for trading purposes . Therefore, Fusion Media does not bear any responsibility for any trading losses that you may incur as a result of using this data. Fusion Media or anyone associated with Fusion Media accepts no liability for any loss or damage resulting from reliance on any information, including data, quotes, charts and buy/sell signals on this website. Be fully informed about the risks and costs associated with trading the financial markets, it is one of the riskiest forms of investment possible.

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