The demand for renewable energy in the US consumers continues to grow as 2024 More capacity of solar panels was implemented than in 2023, which was more than 2022. However, US trade policy is changing, and imported solar panels have set high rates, which can lead to a shortage.
I am a scientist investigating the sun, as well as an entrepreneur who seeks to use his power here on earth, creating new solar energy designs. As part of these efforts, I studied market trends and production opportunities in the US and abroad. Currently, US manufacturers do not produce enough solar panels to satisfy the demand for the nation, but industrial investment and federal tax benefits have made progress, although the latest federal actions have caused uncertainty.
2024. US installers have put enough solar panels to generate 50 gigawatts of electricity – enough to feed New York for a year.
US manufacturers made only a small part of that – 4.2 GW solar modules in the first 2024. For half a year. However, it was a large impetus – 75% increased compared to the same period in 2023, and prices were about three times the price of imports.
A glance at the latest import
2024. The US has imported far more panels than the country they need, which indicates that developers can be inventory accumulation panels for future projects.
Many of these imported panels were made in Asia, especially Malaysia, Vietnam and Thailand. In fact, almost all US -made panels used at least a few abroad components. Currently, China is producing about 97% of the world’s photoelectric waffles, which are solar panel construction blocks.
The impact of the US trade policy on the solar energy industry remains unclear. By 2024 Production has lasted for many years to take advantage of government policy to prefer domestic production. Imported panels seem to suffer from increasing rates that increase costs.
Internal production is increasing
Since 2010 The US solar panel production has increased by about eight times. However, US -made panels are more expensive than imported alternatives. 2024. US -made groups usually cost 31 cents per cotton wool, but imported panels, including tariffs that existed before President Donald Trump’s second term, cost about one third of this: 11 cents per wool.
However, domestic manufacturers reduce costs by increasing production while relying on the Government to maintain or increase tariffs by importing, so we can make more competitive domestic sets in the future.
Trusting overseas sources
Despite the increase in domestic production, demand for US solar panels has increased even faster. In order to satisfy demand, the US imports a significant part of its sun photoelectric modules.
Rates, including 30% rate in solar elements and solar panels, have been aimed at increasing domestic production since 2018.
However, because of those rates and declining global prices, solar power devices were more expensive in the US than in the rest of the world. The average cost of the world -implemented solar systems decreased from $ 1.15 for watts in 2012. Up to $ 0.72 for watts in 2016, which is almost half of US installations.
2018 Rates, as well as previous tours in 2012 and 2014, have replaced the US solar panel import source – from China and Taiwan to Malaysia and South Korea. Manufacturers also build solar panels in Singapore and Germany to maintain access to the US market. And Chinese companies even invest in US solar producers to use federal incentives and avoid tariffs.
New rates are emerging
Trump’s proposal for new tariffs for foreign solar goods, including panels and components, especially directed at Chinese -controlled companies in Southeast Asia.
They can include a possible 375% rate in Thai products – almost four -legged prices – and 3,500% on Cambodia products.
On the contrary, US -made solar panels will be cheaper. However, the decreased supply of solar panels will increase even household boards, at least as long as US production can deal with demand. Some developers began to delay or cancel solar power devices to remove rising costs.
Internal investment
Most of the Biden Administration Inflation Act adopted in 2022, the US Solar Energy Commission industry has noticed large investments.
More than 95 GW production options have been added in the US solar supply circuit, including new devices that can build enough solar panels per year to produce almost 42 GW over the current production level. This growth of production opportunities is mainly in Texas and Georgia.
However, the new priorities and trade policy of the administration make the landscape uncertain. Before discussing various solar -related trade policy, the industry predicted that it would install an average of 45 GW of solar panels each year.
This article has been published from a conversation, non -profit, independent news organizations that provide you with facts and reliable analysis to help you give meaning to our complex world. It was written by: Mojaba Akhavan-Tafti, University of Michigan
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Mojtaba Akhavan-Tafti manages Apt Solar Solutions Inc. Shares in Ann Arbore, Michigan. It receives funding from state and private organizations to create and commercialize three -dimensional solar modules.