DUBAI: Solar prices are rising year-on-year, pressured by a jump in costs for raw materials, as well as elevated shipping expenses, CNBC reported citing a new industry report.
Despite this, the US saw an additional 5.7 gigawatts of solar capacity, or enough to power more than 1 million homes, during the second quarter of the year – a 45 percent jump over 2020 levels.
The demand is brought by a global trend from utilities and corporations seeking to meet greenhouse has reduction goals, according to the report by energy research firm Wood Mackenzie and solar trade group Solar Energy Industries Association.
It showed solar installations outpacing wind and natural gas in the first half of the year.
But the report noted some supply chain issues that could impact the growth of the industry, including tariffs on overseas-made panels.
There was also a surge in costs for components and freight, which has delayed some projects in the short-term.
The report said this rise in prices will unlikely hurt long-term demand.
