A wide variety of solar panels are seen in the desert, near Victorville, California, USA, on March 28, 2018. The new US solar installations have increased by 45% and are well on track for a record year despite supply chain pressure. (Lucy Nicholson, Reuters)
WASHINGTON – New U.S. solar installations shot up 45% in the second quarter and are on track for a record year despite supply chain pressure that has increased the cost of residential and utility projects , according to a report released on Tuesday.
The solar industry installed 5.7 gigawatts in the second quarter, or nearly enough capacity to power more than a million homes. It follows the report of the Wood Mackenzie energy research industry and the Solar Energy Industries Association, according to the report of the Wood Mackenzie energy research industry and the solar trading group.
The forecast reflects a strong demand for solar energy from utilities and businesses that want to meet their greenhouse gas reduction targets, as well as homeowners who want to generate their own clean energy. The site accounted for more than half of the new additions of electricity generation capacity during the first half of the year, surpassing wind and natural gas.
Wood Mackenzie also increased his forecast for the next five years by 10%, he said.
But the study also noted some important risks to the dramatic growth of the industry, including supply chain constraints stemming from the coronavirus pandemic, tariffs on foreign-made panels and a ban on imports of materials. plots in the Chinese region of Xinjiang on charges of forced labor.
This ban, imposed in June, “represents a significant and widespread downside risk to our short-term outlook,” the report said, as U.S. Customs and Border Patrol investigations into shipments of detained equipment could cause substantial delays in the project.
Solar’s growth has benefited from the rapid fall in costs that have made the technology competitive with energy generated from fossil fuels. However, in the last year, the prices of utility-scale projects, which make up the bulk of the market, have risen to 12.5%.
Rising component and commodity costs are responsible for the increase, which the report delays some projects, but is unlikely to affect long-term demand.
The approval of several solar subsidies by Congress, including an extension of its key tax credit, would provide significant support for the industry, he added.
However, he noted that negotiations around the $ 3.5 trillion budget bill that would include clean energy support provisions are “full of obstacles and possible delays.”