L R AS Published on Monday 14 March 2022 - n° 397 - Categories:the American PV
Expected reduction in US PV installations in 2022 due to the economic situation
According to the American trade body EIA, variations in raw material prices and uncertainty in the supply chain are likely to reduce US installations in 2022 compared with the 23.6 GW-dc installed in 2021, a year that saw a 19% increase over 2020.
The large power plant sector, which reached 17 GW-dc in 2021, is expected to decline by 14% in 2022 as a result of project cancellations or delays carried over to 2023. Developers have reportedly postponed the construction of large power plants to 2023 by at least 8%. They have cancelled at least 5%. Supply chains continue to face backlogs, delays, and equipment supply availability.
The US industry is hoping that the BBB (Build Back Better) Act will be passed, and that there will be an extension of the Investment Tax Credit (ITC).
If the ITC is extended, the residential, professional and large power plant sectors would see increases of 20%, 15% and 86% respectively.
2021 is a year of rising costs for the solar industry, with year-on-year price increases for utility-scale PV reaching 18% for fixed-tilt projects and 14.2% for single-axis tracking projects in the fourth quarter. Average system prices continue to rise due to higher equipment, raw material and freight costs, as well as labour shortages. Price increases are being passed on to customers.
Growth in the single-axis tracker market for utilities has led to increased adoption of dual-axis and large-format panels, which would partially offset other price increases through system efficiencies.
PV Tech of 10 March 2022
Editor's note: First Solar also mentioned an increase in supply and delivery costs to indicate that 2022 will be a difficult year. Here we mention a restriction on installations in the United States, price rises for raw materials, uncertain supplies and a shortage of personnel. Economic conditions in the sector have changed
