‘Inflection point.’ Biden faces 2 tests that could remake solar

[Elderberry]

Energy Wire By Kelsey Brugger | 01/24/2022

President Biden’s clean energy and jobs agenda is facing a critical test as the White House weighs several decisions on U.S. solar policy, with pressure mounting on multiple fronts.

While the entire solar industry wants to see more panels and cells built in the U.S., there are differing views on how to get there. The current debate hinges largely on two questions: What should happen to Trump’s solar tariffs, and should Biden’s “Buy American” policy be changed?

“We’re at an inflection point for the industry,” said Scott Moskowitz, director of strategy and public affairs at Georgia-based Hanwha Q Cells, the largest solar manufacturing plant in the Western Hemisphere. Solar is “the cheapest form of energy that has ever existed — now that the industry has scaled, how are we going to make sure we install as much as possible?”

China currently dominates the solar manufacturing industry, supplying about 75 percent of solar equipment worldwide. Critics point out its factories are powered by coal and run by forced labor.

One of the first tests for Biden comes by Feb. 6, when he must decide whether to extend the Trump Section 201 tariffs on solar panels and cells that supporters say saved the sliver of the U.S. manufacturing sector that existed. Tariff critics say they did little to boost the U.S. solar industry.

But less attention has been given to another policy approach Biden often promotes: buying American. In recent months U.S. solar manufacturers say they hope the administration will build on the “America First” inclinations espoused by former President Trump.

They are pressing Biden to expand the administration’s Buy American plan. Last year, Biden opened a dedicated office in the White House and issued an executive order to strengthen policies to increase the U.S. content in products that the federal government buys — everything from helicopter blades to office chairs (E&E News PM, Jan. 19).

More: https://www.eenews.net/articles/inflection-point-biden-faces-2-tests-that-could-remake-solar/

[IsailedawayfromFR]

How about the soaring costs of solar panels>  Isn't that a problem as well in the scheme of things?

Solar prices jumped in the second quarter, reversing recent trends, on material costs and supply chain issues
The solar industry is among many sectors feeling the pinch of higher prices, according to a report released Tuesday by the Solar Energy Industries Association and Wood Mackenzie.

Prices rose quarter over quarter and year over year across every solar segment during the period. It’s the first time that residential, commercial and utility solar costs have risen in tandem since the energy consultancy began tracking prices in 2014.

The most-significant cost pressures came from a jump in prices for raw materials, including steel and aluminum. Elevated shipping costs also played a role. The bulk of these impacts will likely start to show in 2022, since many companies have enough inventory to see them through the end of the year, according to the report.

Overall, the U.S. added 5.7 gigawatts of solar capacity during the period, a record for second-quarter installations. That also marks a 45% jump over 2020′s level as the pandemic roiled the industry.

“The solar industry continues to demonstrate strong quarterly growth, and demand is high across every segment,” Wood Mackenzie principal solar analyst Michelle Davis said. “But the industry is now bumping up against multiple challenges. ... Addressing these challenges will be critical to expanding the industry’s growth and meeting clean energy targets.”

A separate report from Rystad Energy released Friday said global solar panel prices have jumped 16% this year compared to 2020′s levels. Overall costs, which include soft costs like labor, are up 12% in 2021. Rystad said this could potentially hurt the demand outlook for the next few years.
https://www.cnbc.com/2021/09/14/solar-prices-jump-as-supply-chain-issues-and-raw-material-costs-weigh.html