The Solar Power Boom and Supply Chain in 2022
The year 2022 possibly shapes up to be a period of remarkable economic growth for solar power – provided that constraints in the supply chain will not impair the industry.
Based on one projection from the United States Energy Information Administration (EIA), American solar companies will potentially install utility-scale capacity with an estimated 21.5 gigawatts in 2022. Such a projection will possibly break the yearly record of around 15.5 GW, which was set in 2021. This projection from EIA, however, arrives during a time of uncertainty for the solar industry.
In December 2021, the trade group Solar Energy Industries Association forewarned that impediments in the supply chain were responsible for the increase in costs and, thus, could hinder the solar industry growth in 2022.
A 2021 projection from consulting firm Wood Mackenzie states that nearly one-third of solar projects would become overdue because of delays in shipping and increases in equipment costs.
Furthermore, the consulting firm originally had a forecast of about 22.5 GW of brand new solar capacity for 2022; after doing a 2021 survey with leading developers and due to incrementing equipment costs and shipping interferences, the firm ensuingly downgraded its prediction to approximately 15 GW.
Despite the gloomy outlook of solar power in 2022, some industry insiders are slightly optimistic.
One industry expert mentioned that developers would probably do everything to overcome the obstacles in the supply chain to attain record installations in 2022, even if there are a few inevitable delays. Other hopeful analysts pointed out that setbacks within the solar industry are only momentary, with developers benefiting from production output ramp-up to meet growing demand and enhanced purchasing strategies.
If the transition to renewables outweighs the world’s excessive reliance on coal and other fossil fuels, solar power could also see gradual prosperity this 2022.
Recent Comments