'A step in the wrong direction': United States utility-scale solar deployment fell 53% in Q2

Jul 28, 2022 04:27 PM ET
  • US utility-scale solar installments in Q2 2022 were down 53% year-on-year as policy headwinds and trade concerns affected growth and raised the stockpile of postponed projects, a new report has actually disclosed.
'A step in the wrong direction': United States utility-scale solar deployment fell 53% in Q2
Image: NextEra Energy

The industry mounted 41 solar projects in the nation with a total capacity of 1,575 MW during the quarter, suggesting solar deployment throughout the first half of 2022 was 25% less than H1 2021, according to the research study from trade body the American Clean Power Association (ACP).

It claimed that headwinds impacting renewables growth include product costs, pandemic-related delays, supply chain concerns and increased operating costs.

US utility-scale clean power deployment in Q2 was down 55% year-on-year to 3,188 MW.

" We have actually been cautioning regarding the storm of policy and also economic headwinds the clean power industry is dealing with, as well as this is an action in the wrong direction," stated Heather Zichal, CEO at ACP.

" Congressional inaction and uncertainty on long-term tax policy, tariff and also trade limitations, and also transmission constraints all impact the demand for clean energy each time when we require to be quickly scaling up development."

The report noted that the availability of solar modules has significantly delayed project schedules adhering to the Division of Commerce's decision to explore obligation circumventions claims.

With virtually 21GW of solar projects currently delayed in the US, the ACP said much of this is a straight result of "misguided trade activities".

Solar module imports into the US fell earlier this year amidst the hazard of possible retroactive tariffs stemming from Commerce's examination, which began in March. Because of this, President Joe Biden has because waived tariffs on solar imports from 4 Southeast Oriental countries for 2 years.

Despite regulative headwinds, the ACP report keeps in mind that solar remains to be the leading modern technology in the United States's clean energy pipeline, with 22,765 MW of solar capacity under construction and also 50,938 MW in innovative development.

Texas is the top solar development state in the country, with 14,117 MW in the pipeline, adhered to by California (7,679 MW) and Indiana (6,325 MW).

The report revealed that the developer with the most solar capacity in its pipeline is NextEra Energy, followed by Invenergy.

ACP claimed a brilliant place was the rise in clean power procurement, as renewables power purchase agreements in Q2 2022 completed 8,502 MW, a 27% boost year-on-year.

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