Hello friends and solar enthusiasts, I have some exciting market insights to share straight off Anza’s Q3 solar module pricing report. This report provides key information about solar company market prices, particularly in the distributed generation (DG) space. For those new to the topic, distributed generation includes residential, commercial, industrial, and community-scale solar projects – basically anything that isn’t a large utility-scale project.
During Q2, Anza reported that we’d hit a milestone in solar with module pricing forming a floor. This essentially means that prices had stabilized at an all-time low. Signs hinted at price increases due to the antidumping and countervailing duty (AD/CVD) petition on imported modules from Southeast Asia. Now, with the Q3 report using data through August, this increase has been confirmed.
Yes, my fellow solar advocates, from April’s low to the high in June 2024, the median U.S. module price rose from 25 cents per watt to 27.5 cents per watt. That’s a 10% increase! Prices have receded slightly since June, but as of August, we’re looking at an overall increase of 8.8%.
What’s the cause of this price hike, you might be wondering? Anza points to both the AD/CVD enforcement and the removal of bifacial solar modules from Section 201 tariff exemption as the key driving forces. With these factors, solar companies producing modules in Southeast Asia have had to alter their supply chains and make capital expenditure adjustments, responding to increased costs.
The good news? Not all are equally impacted. Some manufacturers aren’t within the scope of the investigation and managed to adjust their supply chains quickly, maintaining competitive fixed pricing levels. Yes, even compared to pre-AD/CVD levels.
But that’s not all! The report also shed light on a fascinating trend: the U.S. solar manufacturing sector is rapidly expanding. With the Inflation Reduction Act of 2022, which gives a tax credit covering 10% of the costs of projects that meet a certain threshold of domestic content, demand for U.S. components in clean energy projects has spiked.
What does this mean for solar array for home? This shift is prompting U.S. manufacturers to increase production capacity, aiming to satisfy the surging demand for domestically produced solar components. In fact, between March and August 2024, there was a 7.5% decrease in prices, a reduction of 4 cents caused by this intensified competition among U.S. manufacturers.
In short, it’s an exciting time to delve into solar – especially if you’re considering solar panels for your home. Keeping tabs on these fluctuations allows us as consumers to stay informed and make the most out of our investments in solar. Stay tuned to this blog for more insights and updates from the dynamic world of solar.
Original Articlehttps://pv-magazine-usa.com/2024/10/02/u-s-market-solar-panel-prices-increase-from-april-lows/
