Solar installations in the US have fallen to their lowest level since the coronavirus pandemic began, according to a report from US Solar Market Insight.
Wood Mackenzie and SEIA reported that price rises suppressed the solar market and supply chain bottlenecks in the first quarter of 2022, installing 24 percent less solar capacity than in the first quarter of 2021, the analysis indicated.
The steepest drop in utility-scale solar installations in the first quarter and the lowest number of new projects added to the pipeline since 2017 in the first quarter.
Securing a two-year suspension of new solar tariffs from the Department of Commerce’s anti-circumvention inquiry has given firms the security they need to move forward with their projects, according to SEIA.
“Massive project delays and cancellations” would have continued until 2022 without this move, putting President Biden’s climate ambitions at risk,” it said.
Many makers of solar modules have stopped shipping to the United States since the case was first brought to light in March.
In the following months, manufacturers are expected to begin shipping more products to the United States, which should alleviate these supply bottlenecks.
This week’s move from the Biden administration delivers a shock of stability businesses need to keep projects going and generate jobs, said SEIA president and CEO Abigail Ross Hopper.
“President Biden has noticed how pulls on the industry are impeding grid resiliency,” Hopper said. President Biden
By taking bold action, this administration is reviving the clean energy sector and placing the United States as a global leader in producing solar panels.
Forecasts for 2022 have been halved in the last nine months due to supply chain issues and the anti-circumvention investigation.
Wood Mackenzie’s 2022 base case estimate anticipates an increase of 2-3GW due to the US government announcement, provided that the global market returns to regular operations.