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 , a new law that encourages clean energy technologies to address climate change.
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%.Supply constraints are expected to last until the second half of next year and delay the effects of the IRA, the report said.piled up
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.
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