According to a new report released on March 10, 2022, by the Solar Energy Industries Association (SEIA) and Wood Mackenzie, U.S. solar prices increased in 2021 due to supply chain challenges, trade actions, and legislative uncertainty.[1] In 2021, the U.S. installed 23.4 GW of solar PV, reaching 121.4 GW of total installed capacity. Solar accounted for 46% of all new electricity-generating capacity added in the US, and 2021 marked the third year in a row that solar accounted for the largest share of new capacity. However, the report found that prices increased 18% year over year in 2021 for fixed-tilt utility-scale solar projects and 14.2% for single axis tracking projects in Q4 2021. Additionally, roughly one-third of all utility-scale solar capacity scheduled for Q4 2021 was delayed by at least a quarter. About 13% of capacity scheduled for completion in 2022 has been delayed by a year or more or canceled.

Over the last six months, Wood Mackenzie has decreased near-term solar forecasts by 11 GW, or 19%, due to ongoing challenges. If Congress passes a long-term extension of the solar investment tax credit (ITC), new manufacturing tax credits, and other clean energy incentives, solar installations will increase by 66% over the next decade compared to baseline projections. Without action from Congress, Wood Mackenzie forecasts that solar capacity would only reach 39% of what’s needed to reach President Biden’s 2035 decarbonization goal.

[1] https://www.seia.org/news/solar-growth-trajectory-remains-uncertain-federal-legislation-stalls