Solar modules prices in the United States have reversed in recent months the trend of steady declines of the past few years, as many U.S. solar companies are hoarding panels to take advantage of the full solar subsidy that is set to step down beginning next year.
Due to high demand, the price of solar modules has recently increased by 10 percent from earlier this year, Reuters’ Nichola Groom writes, citing data from energy consultancy Wood Mackenzie.
Although actual installations and in-service dates could be years away, solar power developers have been stockpiling panels in order to take advantage of the 30-percent solar Investment Tax Credit (ITC) in the United States, which, under current legislation, is set to step down to 26 percent in 2020, to 22 percent in 2021, and to drop to a permanent 10-percent beginning in January 2022.
Developers who begin construction or spend at least 5 percent of a project’s capital expenditure this year are eligible to get the 30-percent tax credit regardless of when their solar power plants actually start producing electricity. Continue reading “Why Is U.S. Demand For Solar Panels Booming?”