US PV project installations slow sharply this year, hit by both supply chain and tariff uncertainty
The US solar industry has warned that installations of solar projects in the US will slow sharply this year due to problems with global supply chain disruptions and the threat of new US tariffs on solar panel imports from Southeast Asia.
The latest warning from US Southern Power on Thursday said that nearly 1 billion watts of planned solar projects would be delayed by a year. It follows a string of warnings from the industry about global supply chain disruptions and potential tariff measures. The Biden administration last year pledged to decarbonise the US power sector by 2035 and become carbon neutral by 2050. But this sharp slowdown in the solar sector's growth rate could pose a threat to the Biden administration's climate goals.
US Energy Secretary Jennifer Granholm, testifying at a congressional budget hearing on Thursday, said she was equally deeply concerned about the threat posed by new tariffs on solar panels. During a quarterly earnings call, Daniel Tucker, chief financial officer of Southern Power, said that the company's Georgia Power had received regulatory approval last week to delay several solar projects for a year. According to a regulatory filing, five of Georgia Power's scheduled solar projects will be delayed until November 2024 for facilities with a total installed capacity of 970 megawatts. This is enough to power 184,000 homes.
According to regulatory filings, the solar projects are being developed by Nextera Energy USA, EDF Renewables and Consolidated Edison. Georgia Power signed a 30-year contract to purchase power from these solar installations. Southern Power is committed to achieving "net zero carbon emissions" by 2050, partly through the purchase of large amounts of solar energy. Last week, NextEra said it expects to delay its 2.1-2.8 million kilowatt solar and storage project from 2022 to 2023, amid continuing condemnation of the US Department of Commerce investigation.
The company accused the US of conducting an anti-dumping investigation last month that left solar panel imports from four Southeast Asian countries, which account for around 80 per cent of US solar panel imports, facing uncertainty over whether tariffs would be imposed.
