Over the next five years the U.S. solar industry will grow 40% more than prior forecasts thanks to the Inflation Reduction Act.
During the second quarter of 2022 the industry installed 4.6 GW of new solar, down 12% year over year, but up 12% from the first quarter. For the full-year estimates now stand at 15.7 GW added, which would be the lowest annual total since 2019.
The report attributed much of the recent slowdown to the Department of Commerce's anti-dumping and countervailing duty investigation on solar imports from Cambodia, Malaysia, Thailand and Vietnam. In June the White House paused new solar tariffs for two years, but the months of uncertainty stalled new solar installations as developers waited for clarity on future policies.
"Across the solar industry, second quarter volumes would have been higher if not for supply chain constraints and the industry-wide slowdown from March through June, caused by the initiation of the anticircumvention investigation," the report said. Utility-scale solar was the most impacted, with second-quarter installations falling 25% year over year. Still, the 2.7GW of new capacity was up 17% compared to the first quarter. For the full year Wood Mackenzie forecasts utility-scale solar seeing its weakest year since 2018.
One bright spot during the second quarter was residential solar. The segment set its fifth quarterly record, with 1.36 GW installed. The number, which is a 37% increase year over year, represents about 180,000 new customers.as record temperatures drive power demand to new highs. Extreme weather events driven by climate change have also plagued the grid. Power prices are also jumping on the heels of rising commodity prices, which is prompting consumers to turn to solar power.
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