Increased by 40%! Inflation Reduction Act increases US Solar installation to grow fast
Inflation Reduction Act is expected to help add 62GW of PV systems to the U.S. PV market by 2027, a 40% increase compared to the base case forecast.The data comes from the recently released U.S. PV Market Insights Q3 2022 report by the Solar Energy Industries Association (SEIA) and Wood Mackenzie.
The U.S. Energy Information Administration (EIA) released a report in August showing that U.S. power plant developers planned to install 17.8GW of solar capacity in 2022, but only added 4.2 GW in the first six months of 2022.From January to June, an average of 4.4 gigawatts of solar installations were delayed each month, compared with an average of 2.6 gigawatts a month in the same period last year.Due to the US Department of Commerce’s tariff investigation and the Forced Labor Prevention Act and other trade restrictions, the institute’s forecast for PV system installation in the US in 2022 has fallen to 15.7GW, the lowest level for the US PV market since 2019.
On August 7th the US Senate passed the Inflation Reduction Act and sent it to the House of Representatives.The bill plans to spend $369 billion on energy and climate, including tax credits for clean electricity and energy storage. “IRA provides unprecedented long-term certainty for the PV industry,” said author Michelle Davis. Offering a 10-year investment tax credit stands in contrast to the one -, two – or five-year extensions the industry has experienced over the past decade. It is no exaggeration to say that IRA will usher in a new era for the U.S. photovoltaic industry.”
Wood Mackenzie forecasts that cumulative installed pv system capacity across all market segments will grow from 129GW today to 336GW by 2027, representing a 200% growth rate. And 78% of utility-scale PV systems will be installed in the next five years.
PV Hardware (PVH) of Gransolar Group, a Spanish manufacturer of solar trackers and structures, has announced the construction of its first production center in the United States.PVH’s solar tracking device, which produces about 10 percent more power than a typical PV stand, will also increase U.S. PV capacity.
With the global energy shortage, the price of electricity continues to rise, and regional blackouts are becoming more and more common, the United States urgently needs to install a set of its own roof solar photovoltaic power station to provide power. There are data showing that nearly 180000 households in the US roof photovoltaic field installed roof photovoltaic systems in the second quarter of 2022. By 2027, the tax credit for batteries used with photovoltaic modules and off grid photovoltaic systems in the inflation reduction act will promote the increase of 7.3gw of rooftop photovoltaic systems in the United States.
Despite the impact of supply and trade restrictions in the United States, Abigail Ross hopper, President and CEO of the photovoltaic industry association of the United States, said: “the inflation reduction act will also change the situation of the energy economy in the United States, and the wave of investment in clean energy and manufacturing will improve the level of communities across the country