Ban on supplies from China will collapse market solar installations
2022.12.13 00:34
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Ban on supplies from China will collapse market solar installations
Budrigannews.com – According to a market report that was released on Tuesday, new solar installations in the United States are on track to decrease by nearly a quarter this year. Panel imports are being held up by a ban on goods from China’s Xinjiang region due to concerns about forced labor.
Solar companies are attempting to take advantage of generous subsidies in the Inflation Reduction Act (IRA), a new law that encourages clean energy technologies to address climate change. This coincides with the pessimistic forecast made by industry trade group the Solar Energy Industries Association and research firm Wood Mackenzie.
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According to the quarterly report, the number of utility-scale project installations will decrease by 40% this year, from 2021 to 10.3 gigawatts.
The majority of the solar market in the United States consists of large projects for utilities and other large customers. Despite a 37% increase in the residential market, commercial and community installations are expected to also decline.
Installations in the United States are expected to decrease by 23% to 18.6 GW overall.
According to the report, supply constraints are anticipated to last until the second half of next year, delaying the IRA’s effects.
Since the Uyghur Forced Labor Protection Act went into effect in June, more than 1,000 imports of solar energy worth hundreds of millions of dollars have accumulated at U.S. ports. Manufacturers are worried that additional cargoes will be seized as a result of the detentions, which have halted new shipments.
Before imports can be cleared, producers must present sourcing documentation for imported equipment that dates back to the raw material under the UFLPA. That has demonstrated surprisingly troublesome, SEIA said.
“We cannot afford to waste time tinkering with trade laws as the climate threat looms in the aftermath of the Inflation Reduction Act (IRA),” SEIA President Abigail Ross Hopper stated in a statement.
The market is anticipated to resume growth next year, with annual increases of 21% on average between 2023 and 2027, according to the report.
