The newest report from the International Energy Agency (IEA) Photovoltaic Power Systems Program (PVPS) says photo voltaic data might be damaged throughout the United States in 2023, as worldwide commerce points ease and the monetary safety elevated, pushed by the implementation of the US Inflation Reduction Act. .
The IEA-PVPS launched a report evaluation of the event of the 2023 market of the electrical energy system within the United States, outlined as all put in within the nation terrestrial PV purposes with a capability of greater than 40 W.
It mentioned that data for the whole US photo voltaic trade had been damaged final 12 months, as market disruptions from worldwide commerce points decreased and coverage and monetary certainty elevated following the implementation of the US Inflation Reduction. Act (IRA).
A complete of 26.3 GW of recent photo voltaic capability was deployed final 12 months, together with 18.4 GW in utility-related initiatives and seven.9 GW in decentralized programs. By the tip of 2023, there might be greater than 4.7 million decentralized PV programs linked throughout the nation.
Community photo voltaic initiatives, which discuss with native photo voltaic services shared by a number of gamers who obtain electrical energy invoice credit for his or her share of the electrical energy produced, contributed 1.04 GW to the brand new whole of deployment. The report states that this know-how is quickly rising in reputation within the US market.
The most important demand drivers for PV progress within the United States embrace power storage, which can exceed 7.2 GW of annual installations by 2023, and electrical car demand, which can improve to almost 1.5 million automobiles final 12 months. Additional drivers embrace rising retail electrical energy prices, shopper demand for higher sturdiness, and photo voltaic set up in new residential development. The report said that the report progress occurred regardless of challenges equivalent to lengthy interconnection timelines, rising prices, native opposition, and rising costs.
The IRA has been referred to as “essentially the most vital change in direct help insurance policies for photo voltaic power in US historical past,” mentioned the IEA-PVPS. the Federal legislation introduces a number of tax credit and incentives for small and huge photo voltaic installations and manufacturing. By 2023, a number of provisions underneath the IRA have been clarified and applied.
The report mentioned that following the passage of the IRA, home deployment projections “elevated considerably and there have been bulletins of producing services up and down the provision chain.” As of May 2024, there might be greater than 300 GW (DC) of producing capability introduced throughout the whole photo voltaic provide chain, IEA-PVPS mentioned, together with polysilicon, wafers, cells, ingots, monitoring, manufacturing instruments , inverters and different module parts all through. new services or growth.
“Many undertaking homeowners and analysts credit score the expanded and new IRA tax credit because the driving pressure behind this progress,” it mentioned. It predicted that the IRA “will drive even quicker deployment within the coming years.”
The report states that PV module costs and system prices proceed to say no, growing the competitiveness of photo voltaic electrical energy. It cites a mean residential PV system worth of $2.49/W in 2023, whereas giant centralized programs fall to $1.16/W. The common worth for the standard crystalline silicon module is $0.39/W.
By 2023, module imports will nearly double in comparison with 2022 ranges. IEA-PVPS studies that 162 installers and builders have famous eased provide chain constraints, with a report progress as a result of deployment of delayed initiatives. Despite the rise in home manufacturing capability, a lot of the PV modules used within the United States are nonetheless imported.
In its concluding remarks, the report states that “worldwide commerce points proceed to emerge as the brand new manufacturing market seeks to guard itself, and it stays to be seen which sectors of the provision chain and enterprise fashions will succeed on US shores.”
The report is a part of IEA-PVPS Task 1, which focuses on the technical, financial, and social features of PV energy programs.
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