Solar Equipment Shortages Due to COVID-19 Pandemic
Vaccines may be providing hope that the COVID-19 pandemic is reaching its demise, but solar equipment shortages are still present as COVID continues to shutdown countries around the world.
Act now and you’ll avoid paying overpriced costs. Here’s why solar shortages are happening and why you need to hurry up and invest in solar in Florida now:
Ongoing Disruption to the Solar Industry
COVID-19 has disrupted the production and transportation of key solar equipment that is typically imported from overseas since as early as last March. Although the equipment has been making its way through, the solar industry is seriously suffering from shortages that show no sign of slowing soon.
In particular, China is one of the major sources of solar equipment and has placed many of its cities under frequent lockdowns. This has caused factories and suppliers to shut down entirely, causing solar equipment production to hit a wall. Naturally, as China accounts for 80% of the global market, this has triggered shortages for solar installers, big and small. The same can be said for much of Europe.
The Fight for Raw Materials
Even US manufacturers are hit by China’s delays, as raw materials such as aluminum and PV glass have been hard to find. With production rates so low, imports to the US have been far lower than expected. Shipping companies have also suffered delays, with ports being closed or restricted worldwide.
Consequently, panel manufacturers in the US have been significantly affected by raw material delays. Most solar module production manufacturers in the US stock around one to two months of materials. Sadly, many of these manufacturers are once again running out of stock – so they can’t produce solar panels.
It Could Be Bad News for Solar Batteries Too
The majority of the world’s lithium-ion battery manufacturers are also struggling to keep up with the demands. With mandatory lockdowns and less staff in factories triggering delays across the board.
These delays are occurring as we see boosts in growth for both solar battery storage and electric vehicles.
COVID Has Heavily Hit the US Solar Industry
According to the Solar Energy Industries Association, the US solar sector has already lost over 65,000 jobs thanks to the pandemic. That’s five years of job gains!
Most of the job losses have been in the residential and commercial solar sectors. These employ a larger number of people per gigawatt than the larger utility-scale solar market. We’ve seen other companies have their solar projects canceled and even some installers close entirely.
Solar Prices Expected to Drive Up!
The cost of PV modules has risen for many solar power installation companies over the past year and is likely to rise again as these solar equipment shortages hit.
When supplies, competition becomes fierce and that causes the prices to rocket. And guess what? As solar companies have to pay higher equipment costs, they too have to raise their prices.
The Warning Signs Are Clear
The warning signs are evident in countries such as India and Australia. They’re already feeling the heat of China’s worrying glass shortage and are seeing prices rocket higher than Gamestop stock.
Glass shortages have seen prices rise by 71% since July and it’s hitting every country. Naturally, if the price for Chinese glass goes up, then so does the competition for US glass.
The general manager of the world’s largest solar company said, “If solar power generators see solar projects as uneconomical, they will delay investing in new projects and that will drag down solar demand. Solar power plant profits will drop below acceptable levels… if glass makers go on to push up the costs.”
Glass now accounts for around 20% of all solar panel production costs, double the usual amount. Although new glass factories are being planned, it will take at least 1-2 years before they have any effect.
The solar industry could be 20% to 30% short of the glass it needs next year, with the market not being back in balance until 2022. One analyst says: “The shortage is expected to worsen over the next year. Prices for such glass may remain at high levels.”
Why You Need to Invest in Solar Now
Thankfully, Florida Power Services “The Solar Power Company” has enough supplies to cover us for a little while. But as this pandemic’s latest variants spread violently, we fear the worst – an imminent solar equipment shortage.
We don’t want our customers to lose out, paying far higher than they should. That’s why if you’re considering solar installation in Florida, you should hurry up and buy now! Supplies usually have to be ordered in advance, meaning these higher rates could last throughout 2021.
Avoid paying against the competition; install solar in Florida now!
Hope on The Horizon?
The good news is these solar equipment shortages last forever. Hopefully, within the next year or so, we can all start to put the Coronavirus behind us so that prices can return to normal and we can see the projected decrease in solar equipment costs.
However, if you want to make the most of this year’s tax credits and other incentives, then you need to act fast! It’s highly advised that you get in ahead of the competition and buy Florida solar now!
Thanks to the extension of the federal tax credits included in the recent $3 trillion COVID-19 stimulus package, the demand for solar should keep the industry flowing and moving onwards to the bright future it’s projected to have.
HURRY UP AND INVEST IN FLORIDA SOLAR NOW!
As the leading solar installation company in Florida, we currently have enough solar equipment supplies to get your project started and complete at no extra cost or delay. However, we’re warning all potential customers to get in fast!
Schedule a consultation with Florida Power Services “The Solar Power Company” today, and we’ll answer any questions you may have and can install a solar system that ensures your property is built for the future!