Solar Just Saw its Worst Quarter Since 2020
The American solar market has been experiencing a lot of turmoil in the past couple of years. Significant disruptions were seen since the beginning of the pandemic, but now over 2 years out, we’ve just ended the worst quarter of the period. Q1 of 2022 saw a 24% drop in installed capacity from Q1 2021. This figure was determined in the U.S. Solar Market Insight report, a collaboration between the Solar Energy Industries Association (SEIA) and Wood Mackenzie. The utility-scale segment plummeted by 41%, while community solar shrank as much as 59%. Commercial solar fared better, with a 28% decline.
Trade Chaos & Inflation So, what factors have created this pinch? SEIA and Wood Mackenzie point to supply chain barriers and rising prices for solar products. Continued production disruptions arose from coronavirus outbreaks, and a mounting controversy over import tariffs created a hostile environment for trade. By March, the industry was faced with the launch of an investigation into tariff evasions, which prompted widespread shipment cancellations. Between the end of 2020 and 2021, panel prices increased by 10%, and further hikes were expected to result from the climax of the trade bottleneck. All of these pressures pushed experts to revise their once-promising forecasts for 2022, issuing new predictions that only anticipated half as much activity.
Some Optimism for Residential Solar Despite these hardships, home-based solar has actually been weathering the storm well. According to the SEIA report, residential solar energy had its largest quarter in history, with a 30% increase in installations since the same time last year. This has been attributed to a steady rise in demand for solar. As electricity prices escalate and energy needs grow in a warming climate, more homeowners are seeing solar as a necessary investment, even in this challenging economy. Contractors who focus on residential installations may be faring best in the coming time. Although Biden’s recent halt on tariffs and investments in domestic production are set to ramp up activity in the other sectors again, it will take some time for these initiatives to yield positive change.
Where to Source Rooftop Solar Customers Grid Freedom has been working to provide contractors with easy connections to sale-ready solar leads. As one of the industry’s most dependable solar marketing companies, we’ve established the process needed to generate a consistent supply of pre-screened, fully eligible solar customers. All leads have been interviewed via phone calls with our agents, ensuring that only real clients with real buying intent are passed along. Contractors looking to get a quick jump on residential leads can enjoy immediate scheduling when they come to our agency. Every lead purchased comes with their first consultation appointment already booked.
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