Solar Continues To See Growth
The Inflation Reduction Act and corporate tax benefits are cited as reasons for the solar energy industry's ongoing growth in SolarReviews' 2022 poll. Due to the rising demand, the industry's ability to expand is constrained by problems with the supply chain, a labor shortage, and the cost of financing.
More solar manufacturers are starting up in North America, and several companies aim to further expand in the coming year. According to the SolarReviews poll, 73% of survey respondents plan to sell more solar in 2023, and an increasing number of installers now provide energy storage and electric vehicle charging installation.
Despite higher solar demand in 2022, 41% of respondents claimed that supply chain problems were worse than in 2021. Along with the IRA committing billions of dollars of investment in American solar manufacturing, these hurdles could lead to increasing reliance on local production. Currently, local supply chains are unable to keep up with demand, and further effects, such as the recent decision to lift President Biden's suspension of the solar panel tariffs, might have a greater negative impact on the U.S. economy.
Across the nation, inflation continues to be a major obstacle for solar firms. However, increases in electricity prices owing to inflation were indicated as a factor for increased demand for solar in 2022 as customers strive to cut down on utility expenses.
This summer will mark a full year since the adoption of the Inflation Reduction Act, which features measures meant to promote domestic energy manufacture and output. The majority of the industry expects that the IRA will lead to further expansion of their business.
According to the survey, solar companies are still figuring out how to take advantage of the new law's specific policies, but the majority believe that it will at the very least increase demand. Respondents also report that of the IRA's offerings, they are most likely to take advantage of Section 48 tax credits for the first time. Homeowners can now also take advantage of a 30% tax benefit.