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5 Solar Trends We’re Watching in 2022 and 2023

Posted on October 19, 2022 by Mike Zimm

The solar industry is growing by leaps and bounds, leaving many to wonder what the next phase of growth might look like and when it could arrive.

President Joe Biden has expressed the need for more renewable energy to meet the country’s ambitious environmental plans. The ultimate goal is to move to a completely decarbonized energy sector by 2050, but the United States will need a massive boost from its sustainable energy producers like wind, hydro, and solar power.

So what exactly does the future look like for solar? We’ve highlighted the five biggest solar power trends we think will influence the rest of this year and into 2023, and it’s a mixed bag. Some of what we’re seeing is incredibly encouraging, while other aspects give us some reason for short-term concern.

From the supply chain to overseas tariffs, these are the five biggest trends we’re watching this year.

The Supply Chain is Dictating Solar Costs

Unfortunately, the world has not recovered from the COVID-19 pandemic nearly as quickly as we had hoped for.

China’s on-again-off-again lockdowns have caused starts and stops in many manufacturing supply chains, resulting in lower availability of goods. Labor issues in the U.S. mean there aren’t enough dock workers and truck drivers to move raw and finished materials from ports, creating additional supply chain bottlenecks.

The lack of manufacturing production combined with less labor means that are fewer products available, leaving companies and utilities scrambling to source everything from solar panels and batteries to copper wire. These unintended shortages and delays have put the brakes on some utility solar projects, with some utility scale solar projects facing delays ranging from a couple months to next year.

According to the SEIA, solar prices were up 18% in 2021, though the spike can’t solely be attributed to a shaky supply chain (more on this topic later). The organization went on to say that about one-third of 2021’s Q4 capacity was delayed by a quarter, while about 13% of capacity slated for this year has been pushed back at least a year, or cancelled entirely.

The supply chain’s struggles are now becoming the entire industry’s problems. Short-term solar forecasts are down by nearly 20%, and reports suggest the industry could grow about 25% less than expected this year.

It’s not all bad news. Even with the pandemic, utility scale solar power costs dropped going into 2021, falling by about 12%. Short-term spikes in the cost of materials, including those used to make the panels, threaten to erase those cost savings, though relief seems to be on the way from the Biden administration.

The Solar Industry Is Dealing with Tariffs Galore

For several years, China has found itself the subject of anti-dumping regulations from the U.S. Simply put, dumping is what happens when a company offloads its product in another country for much cheaper than they would in their home country. According to the U.S., companies in China has been selling their solar technologies at a very low cost, making it harder for companies domestically to compete.

To fix the issue, the U.S. assigned tariffs to Chinese and Taiwanese solar panels in 2014, increasing prices by 50%. Chinese companies, though, may have used a loophole to avoid tariffs and still get their products into the U.S. by establishing companies in other countries like Malaysia, Thailand, Vietnam, and Cambodia and sending products to the U.S. tariff-free.

Today, more than 80% of the most popular solar modules come from those four countries. That means most of the panels used on utility sites in the U.S. are primarily coming from Asia, and most likely from a China-based company. In 2018, then President Trump instituted tariffs to increase the cost of manufactured products coming in from those countries.

Most recently, the U.S. Department of Commerce began looking into solar cell imports from Malaysia, Thailand, Vietnam, and Cambodia to assess whether dumping had occurred, but in early June, President Biden issued an announcement that it wouldn’t impose new tariffs on solar imports for two years. The move is expected to help get utility solar projects across the country back on track as soon as possible.

Long-term Solar Costs Will Decrease

Solar is already among the cheapest energy producers available today, but as production costs continue to drop and panel prices become cheaper and more efficient, it could open up more avenues to expand solar systems across the country.

As recently as 2020, electricity produced by utility-scale solar cost about 5 cents per kWh. The cost dropped to 3.5 cents per kWh in the most optimized regions. The hope is that solar panels become more efficient, while the costs of modules and BOS systems keep dropping.

So far the trend has held up. From 2010-2020, the cost of a utility PV solar system dropped by more than 80%. Despite a short-term increase in prices due to the pandemic, supply chain issues, and tariff concerns, overall trends show on-site project costs continuing to fall as more efficiencies are found.

For its part, Sun-Pull Wire is continuously working to revolutionize how PV wire is installed on utility scale systems. Sun-Pull’s cable solution, for example, cuts down on overall labor costs and project time by allowing a team of 3 to 4 people to install 1mW of string PV wire per day. Compared to single wire pulls, Sun-Pull’s PV wire can cut installation times by nearly 80%.

Faster installation times means more work gets done faster, increasing overall productivity of on-site teams, which helps companies address labor shortages or take on more projects with the labor they have.

Labor Shortages Are a Threat

Like many industries, solar energy is also facing a worker shortage.

Projections for the solar industry are positive, with estimates suggesting 1.5 million people could be employed by 2035, but in 2020 the industry only clocked about 231,000 workers – less than before the pandemic. To meet the Biden administration’s aggressive clean energy goals, it’s estimated that solar companies will need to employ about 900,000 workers.

With that said, productivity was still up and the hope is that the industry will continue its rapid ascent as more companies come online. As more projects are completed and adding power to the grid, SEIA believes annual growth will stay strong, but is somewhat dependent on the supply chain. Despite a shaky supply chain, the group says there is a lot of demand for solar and it will remain popular in the coming years.

The U.S. Bureau of Labor Statistics (BLS) agrees. As the country moves away from traditional fossil fuels for energy, the agency says solar, wind, and other renewables will need to step up to fill the gap.

The industry is also moving quickly to meet anticipated demand. Companies like Sun-Pull are solar innovators, finding ways to create cost savings for solar workers and energy providers. Sun-Pull’s bundled cable solutions allow even inexperienced workers to move more quickly and install PV wire to panels much faster than traditional single-pull methods.

Faster set-ups mean fewer people are needed on the job site, saving time, money, and manpower along the course of each utility-scale PV wire project.

Better PV Modules and Outputs Are Coming

In 2021, utility-scale solar produced nearly 114 million kWh, reflecting nearly 30% growth over the previous year. We expect outputs to keep increasing as more projects are added to the grid.

This coincides with other advancements in solar technology meant to increase energy production and efficiency. So far, the highest efficiency a solar panel has recorded is 47%, though most solar panels on the market today hover in the 20s. However, multijunction solar cells tend to perform better than other types.

Increasing efficiency is an important aspect of reaching our energy goals and there are several ways to make it happen. This can be done in a few different ways:

Better thermal management – This will help solar panels perform better in colder environments.

Minimize reflection – This requires non-reflective colors and coatings or using a textured surface to keep prevent solar rays from bouncing. More captured light means more efficiency.
Reducing recombination – Recombination occurs when electrons return to their regular valence band. Companies can reduce recombination by cutting down panel impurities and other defects.

Where Does Solar Go from Here?

The goal is for solar energy to eventually replace traditional power plants. While it’s certainly within reach, the industry has some catching up to do.

Solar PV energy is here to stay. Like wind, the Sun is an ultimately renewable resource that has the potential to create an incredible amount of electricity, especially in areas where the sun shines consistently. It also stands to benefit from continued enhancements, making panels and systems more reliable, efficient, and longer lasting.

Recent actions, including a moratorium on new tariffs, will go a long way toward making life a bit easier for solar companies. With fewer roadblocks and a slowly improving supply chain, the entire solar industry is poised for massive growth in the coming years.

We’re excited for the future and can’t wait to be a part of the solar revolution!

Is the U.S. Ready for 100% Renewable Energy?

Posted on October 12, 2022October 12, 2022 by Mike Zimm

Renewable energy has grown by leaps and bounds in recent years. But is the U.S. fully prepared to move forward with a 100% clean energy program?

In 2021, renewable energy produced about 20% of all utility-scale electricity in the U.S., but only about 2.8% (115B kWh) was supplied by utility-scale solar energy operations, not including the additional 49B kWh generated by smaller-scale solar operations. The number may seem small, but it’s been growing annually and gives people hope that a fully green grid may be possible.

Two things are clear if you’ve followed the news over the past several years. Fossil fuels won’t be the answer forever, and renewables still have a couple hurdles to jump to pick up the slack.

The U.S. has some pretty ambitious energy goals, and the Biden administration has hinted that it would like to take steps to move away from traditional fossil fuels. This includes an ambitious proposed plan to reach 100% clean electricity by 2035.

Though some experts believe it’s possible to hit the goal in short order, more than 60% of our energy is dependent on fossil fuels. It will take more effort, investment, and support to achieve.

Is the U.S. Ready to Take the Next Step?

At first glance, it might sound like a loaded question – but the answer may be yes.

Several high-level studies, including one by Stanford in 2015, believe the United States can ultimately run on renewable energy… just not by 2035. They peg the year at a more realistic and gradual 2050. Though the study has been questioned, inspiration can be taken from it and its methodology.

This isn’t to say progress isn’t being made in certain states and regions toward a fully renewable future. Rhode Island recently signed legislation into law committing to 100% renewable energy by 2033. The move puts the tiny state at the forefront of the renewable revolution, and it could be the first in the nation to go fully renewable.

Earlier this year, California also made headlines when the state was powered only by renewable energy. The conditions were perfect, allowing California to produce more energy than it needed using only renewable power.

The Golden State has proven that renewable, carbon-free, and sustainable energy sources can replace traditional power generation methods like coal and natural gas. In 2019, about two-thirds of the state’s power came from renewable energy systems like wind, solar, hydro, and nuclear. According to one energy manager with the Union of Concerned Scientists (UCS), investing heavily in solar and wind technologies will get us the bulk of the way, up to 90 percent, toward our clean energy goals.

Why It’s So Hard to Quit Fossil Fuels

If renewables are the future and everyone is scrambling to become the first to be rid of fossil fuels, how come we can’t seem to make it happen more quickly?

The problem is that despite all of the pollution and the trouble we go through to use fossil fuels, they’re energy-dense and efficient forms of energy production. This means they produce energy at a higher rate than other forms of energy, including wood and biomass.

Although oil isn’t typically used for electricity production, natural gas and coal are high-energy generators. They can pick up the slack on days the wind doesn’t blow and clouds block the sun’s rays from hitting solar panels.

Even on that record-breaking day when California produced all of its electrical needs using renewable energy, fossil fuels were working behind the scenes. Fossil fuel power plants take hours to come online, so it’s easier to keep them running than risk not having enough power during peak use hours.

How Do We Make the Move to 100% Renewable Energy?

The easiest way to increase the adoption of renewable energy is to continue investing in it.

This means investing in more green technology, including increasingly efficient solar panels, better wind turbines, and innovative batteries that can store generated electricity for longer. Part of the equation to reach a fully renewable future involves “overbuilding” the electrical grid, meaning we build enough infrastructure to supply more energy than we need.

Some projections spot the number at about 2.5 times the total energy demand to ensure we cover all the bases. That growth means utilities and companies must invest in solar and wind energy, requiring more workers, materials, and space to build.

Another issue we’ll have to tackle soon is energy storage. Wind and solar are variable energy producers, meaning the amount of electricity they produce relies on several factors. On perfect days, harnessing all the excess energy produced and effectively storing it can go a long way toward a clean energy grid.

Recently, researchers in Finland have created a device that allows low-grade sand to store heat energy for months. The heat energy is used to warm homes and even a local swimming pool. The storage system isn’t as efficient when turning heat into electricity, but could potentially be improved to meet rising energy demand with low-cost solutions.

Ensuring Workforce is Ready

Amid a labor shortage, companies across many industries find it tough to attract enough workers to keep operations running smoothly. Electricians, in particular, are in high demand, making it even tougher to attract and retain talent.

Sun-Pull Wire is one of many companies on the edge of innovation, developing products like bundled wire systems that can be installed quickly and save up to 80% of the installation time of string PV, helping with labor shortages and enabling DC installers to take on more projects.

The Government Needs to Step Up

If the U.S. wants to rely on renewable energy sources to power the country, support has to come from the top.

The Biden administration took a big step forward by suspending solar tariffs for two years against four Asian countries, including Cambodia, Thailand, Vietnam, and Malaysia. In another encouraging step, the government recently lifted solar tariffs on goods coming in from Canada, a move made in 2018.

Without the tariffs, utilities can import solar panels and other components at a lower price and reduce the number of delays and cancellations. Fewer tariffs also allow the installed solar capacity to continue growing at a healthier rate.

Unfortunately, tariff concerns did have an impact on the market. The Solar Energy Industries Association (SEIA) reported in its Q2 2022 insights that about 18 GWdc worth of projects were put on hold for at least a year. Another 450 MW was outright canceled.

Reduced tariffs aren’t all rainbows and butterflies, though. U.S. solar manufacturers may find it harder to compete against low-cost imports, claiming it as a disadvantage. On the other hand, utilities and other companies gain access to affordable panels, spurring the country toward its renewable energy goals.

Ready to Learn More About Solar?

Sun-Pull is ready to support a cleaner, renewable future with simple-to-use PV wire solutions.

Our knowledgeable team of solar experts is ready to answer your questions and get the right products into your hand as fast as possible with the shortest lead times in the industry. The Sun-Pull team is ready to support you from start to finish, including blueprint analysis, product help, and decades of solar experience.

Rhode Island Sets Stage for 100% Renewable Energy

Posted on October 4, 2022 by Mike Zimm

Rhode Island may be the smallest state in the nation, but it is making a big splash regarding the future of green energy in the United States.

On June 29, 2022, Governor Dan McKee signed legislation that puts the Ocean State on pace to be the first in the U.S. to reach 100% renewable energy. The law requires that by 2033, 100% of the state’s electricity be offset by renewable energy. Although the law doesn’t prevent using fossil fuels for energy production or use, they will be offset by clean energy sources like wind, solar, and geothermal.

According to Gov. McKee’s office, the new law is expected to create thousands of new jobs while cutting the cost of renewable energy across the state.

“We’ve seen a 74% increase in green jobs since 2014, and that trend is going to continue as we deepen our commitment to renewables,” State Rep. Deborah Ruggiero said in a statement. Ruggiero anticipates thousands of new jobs to come online to support renewable energy sources that will come online over the next several years.

Blueprint for Success: Incremental Increases to Reach Renewable Goals

If Rhode Island wants to be the first to reach 100% renewable energy, it needs to invest in emerging forms of electricity production. This will likely mean leaning more into geothermal energy, wind energy, and developing solar energy systems that take efficiency to another level.

One way to encourage more renewable energy is by turbocharging green initiatives. Under previous state laws on the books, the state was annually increasing the percentage of renewable energy generated by 1.5 percentage points. Under the newly signed law, the number picks up speed each year until reaching a 100% Renewable Energy Standard in 2033.

According to the law, the Renewable Energy Standard percentage will increase by 4% in 2023, jumping by one percent annually through 2026. The increases then become smaller, staying flat in 2027 and then rising by a half percent each year through 2032.

So, how does the new law work? Each year, utilities must buy renewable energy certificates for a certain percentage of power sold annually. These certificates help offset the amount of energy produced and sold by traditional fossil fuels in the state. Besides the certificates, the law also leans on renewable energy producers to up their production using everything from solar energy technologies and offshore wind to hydroelectric facilities and other sources.

What Does Energy Look Like in Rhode Island Today?

It might seem like a lofty goal for any state, but Rhode Island has an opportunity to make some waves.

U.S. Energy Information Administration (EIA) data suggests Rhode Island uses the least energy per capita in the U.S. The state also produces about 90% of its current electric supply using natural gas, the highest percentage in the nation. Only about 12% of the state’s energy came from renewables, with half coming from solar panels.

While it’s encouraging to see such an aggressive clean energy law on the books, there is certainly work to be done. In March 2022, for example, Rhode Island’s renewable energy production reached about 79k MWh, a far cry from the 478k MWh produced by its natural gas-fired plants.

The data paints a picture of a state in transition. Renewables aren’t a major energy producer in the state yet, but current production is still four times more than it was in 2018. Rhode Island is also an environmentally conscious state, pumping out the second-lowest CO2 emissions in the nation, only behind Vermont.

Solar Goals in the U.S.

Rhode Island is not the first state to push for a 100% renewable future. California was among the first to lean into clean energy, but states on both coasts are now getting involved using the blueprints laid out by early adopters.

It will take years to wean ourselves from fossil fuels – it also won’t be likely to turn our backs on such efficient forms of energy. Thankfully, renewables are rising in popularity, and their efficiency is expected to increase as innovations are achieved.

The improvement isn’t hard to see, either. In 2021, renewable energy sources totaled about 20% of U.S. electricity; it could increase due to recent tariff exemptions enacted by the Biden administration. The two-year exemption is expected to keep several upcoming solar projects on track while reducing the number of delays and cancelations over the next 18-24 months.

Companies like Sun-Pull Wire are also ready to do their part to ensure the solar industry grows as quickly as possible. This means producing solar photovoltaic (PV) bundled wire systems that are easy to install, simple to use, and can be done using fewer workers to address labor shortages or take on even more projects.

Ultimately, the goal is to make widespread utility-scale solar arrays a possible and affordable option throughout the United States.

Rhode Island’s Investment in Renewables is Important

Yes, Rhode Island is a small state, but being successful could prove that fully renewable energy is no longer a pipedream. It’s a tangible goal that can be reached with radical transformation and aggressive building toward the finish line.

The law is aggressive but also puts Rhode Island on the cutting edge of the renewables curve. Their commitment to green energy is launching it ahead of other states like California, New York, and North Carolina.

It should come without saying that the solar industry is excited to see what a renewable future looks like. We’re ready for whatever might come next and excited to help serve everyone’s solar needs today, tomorrow, and for years to come!

What Do Tariff Suspensions Mean for U.S. Solar Energy?

Posted on August 31, 2022 by Mike Zimm

Business is looking a little sunnier for U.S. companies, thanks to several encouraging announcements from the White House.

In June, President Joe Biden announced a 2-year exemption for solar imports, lifting restrictions on solar products coming in from four Asian countries; Cambodia, Malaysia, Thailand, and Vietnam. The announcement follows in the footsteps of an investigation launched in March regarding anti-dumping regulations imposed by the U.S. on China several years ago. Although the tariff exemption is big news, it does not apply to China or Taiwan, which both still have their tariffs in place.

Asia is a massive player in the solar panel industry. In fact, upward of 80% of the solar panel imports come from Asia, meaning that America’s solar goals are somewhat contingent on having a relationship with our overseas trading partners. Pausing tariffs on incoming solar panels helps utilities and other companies that had paused their plans to restart the process.

Besides the exemptions, the Biden administration also invoked the Defense Production Act (DPA). This opens the door for additional government investment in clean energy projects, including solar. According to the Department of Energy (DoE), this money is for companies to expand clean energy manufacturing, build new facilities, and help consumers access greener products.

The hope is that with more investments, U.S.-based companies can boost domestic solar panel production so the country can rely less on imports. As the DPA effort ramps up, the 2-year tariff will serve as a temporary solution to give domestic manufacturers a chance to make enough supplies to catch up to what is imported.

Who Stands to Win with Tariff Exemptions?

As with any governmental announcement, there will be winners and losers. In this case, several clear winners emerge in the near- and long-term.

Domestic Companies with Solar Projects

Tariffs have a contentious and complicated history in the United States, often acting as a defensive mechanism used by countries to protect domestic manufacturing. Unfortunately, what typically happens is that consumers get saddled with higher prices associated with the tariffs, and production doesn’t always keep up.

With solar tariffs in place, products like solar panels become more expensive, making it harder for companies to fund previously planned projects. As a result, some planned projects were either delayed or outright canceled.

According to the Solar Energy Industries Association (SEIA), the organization cut its solar installation forecast by half in 2022, mainly due to supply chain issues and uncertainty related to the government’s investigation into possible Chinese anti-dumping tactics.

By cutting at least a little of the bureaucratic red tape, the U.S. is giving domestic companies a chance to complete their solar projects with fewer costs and more certainty. Although the eased restrictions aren’t going to bring back previously canceled projects, there is a chance that delayed projects could get back on track.

The move can’t come soon enough, either. SEIA recently reported about half of all energy added to the grid in the first quarter of 2022 was solar, so there is an appetite for renewable technology.

Domestic Solar Manufacturers

Although the tariff exemptions are meant to ease import costs for solar panels, the activation of the DPA is designed to spur solar manufacturing stateside.

The White House announced in June with additional government support, domestic solar manufacturing was on pace to triple in 2024, going from a current manufacturing capacity of 7.5 gigawatts to 22.5 gigawatts by the end of 2024. This would be enough production capacity to help more than 3 million homes convert to solar energy production annually.

June’s DPA announcement bolsters the production of several solar components, including photovoltaic (PV) modules. The resulting products will give companies domestic options that don’t need to be imported or subject to tariffs. The announcement and expected production increase is also fantastic news for companies that produce other solar components used in solar arrays, including Sun-Pull. Our wire is used to string solar panels together, letting generated electricity flow back to the combiner box.

Perhaps the best part of the tariff exemptions and DPA announcement is that thousands of jobs associated with the solar industry won’t be eliminated. There’s even optimism that solar jobs will increase due to more projects.

Although this is fantastic news for stateside manufacturers, there’s some reason for concern. It’s worth knowing that earlier tariffs imposed to bolster domestic manufacturing have not always resulted in increased production.

The Environment

It’s no secret the United States has climate goals it wants to reach in the coming years, including a series of renewable energy benchmarks in 2035.

The first quarter of 2022 was not particularly great for utility solar energy as only 2.2 GWdc was installed. According to SEIA, it was the weakest quarter of growth in two years and was a far cry from what was considered a strong finish during the final quarter of 2021.

Adding to the problem is the March investigation into China possibly skirting anti-dumping regulations by sending materials to other Asian countries. A month before, Auxin Solar, a small manufacturer, asked the government to investigate the situation, leading to even more uncertainty. The political climate made moving forward with some projects risky, leading to 17.6 GWdc worth of solar projects becoming delayed by a year and another 450MW canceled.

Fewer tariffs, on the other hand, mean domestic companies can once again import low-cost solar panels to complete their projects. It also means current projects can proceed as scheduled with fewer delays, and new projects can get off the ground to bring more solar energy online.

More solar energy is great news for the environment because it lessens our dependency on fossil fuels and other carbon dioxide-emitting power sources. Of course, ramping up the solar industry isn’t like turning on a faucet. It will take months, if not years, to get back up to speed. However, the tariff exemption may go a long way toward getting us started until domestic manufacturers can catch up and bring their own products to market.

What Do We Expect?

It’s tough to look at the tea leaves and find a definitive answer to what we think might happen. Still, the tariff exemptions are a good sign for Sun-Pull and the entire solar industry.

Removing tariffs for a few countries doesn’t fix all the issues we’re currently facing. It won’t be easy for domestic manufacturers to compete with low-cost imported options overseas, but it can be done. The announcements do give manufacturers a much-needed fighting chance, allowing them to meet increased solar needs from a growing number of Americans.

Companies like Sun-Pull Wire are poised to make the most of solar’s growth, with bundled wire systems that will carry the future of energy to millions of Americans across the country. We’re looking forward to seeing brighter, cleaner, and more sustainable energy take the next step.