- Wood Mackenzie predicts US solar installations could reduce by 7.4GW in 2022.
- This reduction is due to logistics and supply chain constraints following the ban on solar components sourced in China’s Xinjiang region.
The report cites the recently dismissed petitions for anti-dumping and countervailing duties on solar cells from Malaysia, Thailand, and Vietnam, leading to “significant” shipping disruptions for importers. Also, the Biden Administration’s late June Withhold Release Order has contributed to supply chain disruptions. On a brighter note, the report, however, predicts that if passed, the clean energy provisions in the Build Back Better Act would stimulate solar market growth. SEIA president and CEO Abigail Ross Hopper added, “We must pass the Build Back Better Act to create quality American jobs, drive transformative solar and storage growth, and overcome supply chain bottlenecks.”
Other key findings in the report
- Solar now accounts for 54 per cent of all new generation capacity added in the US in Q1-Q3 2021.
- Residential solar installations exceeded 1GW and 130,000 systems in a single quarter for the first time.
- Installed costs increased across all market segments for the second quarter in a row, reflecting supply chain challenges.
- In every segment besides residential, year-over-year price increases were at the highest they’ve been since 2014 when Wood Mackenzie began tracking pricing data.