The Solar Energy Industries Association and research firm Wood Mackenzie forecast new U.S. solar installations are on track to fall by 23% to 18.6 gigawatts in 2022; panel imports have stalled because of a ban on goods from China’s Xinjiang region regarding forced labor concerns, according to reuters.com.
The news comes as solar companies look to take advantage of subsidies in the Inflation Reduction Act, a new law that encourages clean energy technologies to address climate change.
The report states utility-scale project installations will contract by 40% this year compared with 2021 to 10.3 GW. Big projects for utilities and other large customers make up the largest portion of the U.S. solar market. Commercial and community installations also are expected to decline, but the residential market is expected to jump 37%.
The report forecasts supply issues are expected to last until the second half of 2023 and delay the effects of the Inflation Reduction Act.
The Uyghur Forced Labor Protection Act—which requires producers to show sourcing documentation of imported equipment back to the raw material before imports can be cleared—took effect in June. Since then, more than 1,000 shipments of solar energy imports have piled up at U.S. ports, and new shipments have stalled because manufacturers fear additional cargoes will be seized.
The report predicts the market will return to growth next year, with average annual increases of 21% between 2023 and 2027.
