Tariffs, equipment detainments caused U.S. solar market to decrease 16% in 2022

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The US added 20.2 GW of new solar capacity in 2022, a 16% decrease from 2021. Investigating new anti-circumvention tariffs Detention of equipment by the U.S. Department of Commerce and by Customs and Border Protection. Uyghur Forced Labor Prevention Law.

Credit: Namaste Solar

according to “US Solar Market Insights 2022 ReviewUtility-scale installations, announced today by SEIA and Wood Mackenzie, fell 31% year-on-year to 11.8 GW, the lowest total for the sector since before the COVID-19 pandemic. Commercial and community solar installations also fell by 6% and 16% respectively. A backlog for connecting new solar projects to the grid continues to limit deployment in each market segment.

Forecasts for this year and next year see a broad market recovery with average annual growth of 19% across all sectors through 2027.

Abigail Ross Hopper, president and CEO of SEIA, said: “Although the solar and storage industries are responding quickly to their supply chains and building a stronger domestic manufacturing base, the ongoing threat of steep tariffs has hampered the potential for historic inflation-cutting legislation. I have.”

In addition to updated 10-year baseline forecasts, the report provides forecasts for solar module supply and domestic manufacturing, Inflation Reduction Act (IRA) guidance, and growth in labor availability, tax equity supply, and interconnectivity. It features high and low deployment scenarios based on sector-specific factors such as timelines.

The total difference between the high and low case results equates to 40 GW of new solar PV deployment over the next five years. In the base case, the US will add over 570 GW of new solar capacity over the next decade, bringing the current 141 GW of solar capacity to over 700 GW in 2033.

“2022 was a tough year for the solar industry, but we expect some supply chain issues to ease, pushing growth to 41% in 2023,” said Wood Mackenzie’s chief analyst. List and lead author of the report, Michelle Davis, said: “With significant uncertainty ahead for the industry, our high-case and low-case scenarios help the industry benchmark potential outcomes. There is a risk of GW up or down, which is the same amount of capacity installed last year.”

The residential solar market will see a 40% increase in solar installed capacity in 2022. 6% of all US homes have solar installedBy 2030, that number is expected to increase to 15%.

In 2022, 783 MW of newly installed residential, commercial and community solar capacity combined with energy storage systems set a new record. By 2027, 33% of new residential solar capacity and 20% of new commercial and community solar capacity will be paired with storage.

For the third year in a row, California, Texas and Florida were the top three states for new solar capacity additions, with California regaining the top spot after Texas led the nation in 2021.

Solar power accounted for 50% of all new generation capacity added in 2022, despite a market slowdown due to supply chain constraints. Solar power now accounts for nearly 5% of his US electricity production.

Notice from SEIA

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