U.S. solar installations to fall 23% this year due to China goods ban: report
Reuters
Published Dec 13, 2022 12:06AM ET
By Nichola Groom
(Reuters) - New U.S. solar installations are on track to fall by nearly a quarter this year, with panel imports stalled by a ban on goods from China's Xinjiang region over forced labor concerns, according to a market report released on Tuesday.
The dour forecast by industry trade group the Solar Energy Industries Association and research firm Wood Mackenzie comes as solar companies are seeking to take advantage of generous subsidies in the Inflation Reduction Act (IRA), a new law that encourages clean energy technologies to address climate change.
Installations of utility-scale projects, in particular, will contract by 40% this year from 2021 to 10.3 gigawatts, according to the quarterly report.
Big projects for utilities and other large customers make up the largest part of the U.S. solar market. Commercial and community installations are also expected to decline, though the residential market is forecast to surge 37%.
Overall, U.S. installations are expected to fall 23% to 18.6 GW.
Supply constraints are expected to last until the second half of next year and delay the effects of the IRA, the report said.
More than 1,000 shipments of solar energy imports worth hundreds of millions of dollars have piled up at U.S. ports since the Uyghur Forced Labor Protection Act went into effect in June. The detainments have halted new shipments as manufacturers fear additional cargoes will also be seized.
The UFLPA requires producers to show sourcing documentation of imported equipment back to the raw material before imports can be cleared. That has proven more difficult than solar companies expected, SEIA said.
"In the aftermath of the Inflation Reduction Act (IRA), we cannot afford to waste time tinkering with trade laws as the climate threat looms," SEIA President Abigail Ross Hopper said in a statement.
The report expects the market to return to growth next year, with annual increases of 21%, on average, between 2023 and 2027.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.