U.S. solar prices jumped 8% in Q2, threatening new projects
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U.S. solar energy prices surged 8.1% during Q2 as projects were stalled by the Commerce Department investigation into tariffs on products from Southeast Asia and soaring input costs, according to a quarterly report from LevelTen Energy released late on Wednesday.
The Q2 increase contributed to a nearly 30% surge in the price of power purchase agreements from the previous year, LevelTen said, as economic, logistical and labor market disruptions during the pandemic have been worsened by Russia's war in Ukraine, reversing a decade of cost declines for the renewable energy sector.
Wind contract costs rose 2.5% during the quarter and are more than a third above year-ago levels, and wind prices in the Southwest Power Pool jumped 16% in Q2 as a lack of transmission capacity has slowed development.
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LevelTen said it is too soon to tell if President Biden's decision last month to waive tariffs on solar panels from Southeast Asia for two years would ease some of the cost pressure.
The U.S. solar industry has been urging the Senate to pass a budget reconciliation bill containing solar downstream and manufacturing supports.