US Solar Contract Prices Have Fallen For The First Time In Three Years

U.S. solar contract prices fell for the first time in three years in the second quarter as module supplies eased, according to a report released Monday.

According to a report published by renewable Energy transaction research firm LevelTen Energy, solar contract prices in the United States fell 1% in the second quarter of the first quarter, although the margin is small, but this marks the first turn in the surge in solar contract prices since 2020.

In the past three years, the price of solar projects in the United States has continued to rise for nearly three years due to supply chain disruptions, inflation and the threat of import tariffs.

However, since the first quarter of this year, with the relaxation of import and export policies and the local incentives in the United States, the local component production capacity has increased rapidly, and the supply of components has gradually eased.

Due to the substantial growth of photovoltaic module imports, the photovoltaic installed capacity in the United States reached a record high in the first quarter, achieving 12GW of photovoltaic module imports, more than 40% of the whole of last year (29GW of module imports in 2022).

Meanwhile, according to a report from Wood Mackenzie and the Solar Energy Industries Association (SEIA) trade group, the United States achieved 6.1GW of solar installations in the first quarter, the best quarter ever, driven by easing module supply.

However, despite the first decline in solar contract prices, the price of solar contracts in the United States was still up 25% in the second quarter compared with the same period last year.

"Although the decline is relatively small (just 1 percent), the news is still encouraging considering the consecutive gains of the last three years," Gia Clark, senior director of strategic accounts at LevelTen, said in an interview.