Author: Seth Parker

Seth Parker is the CEO Melink Solar. Seth’s primary responsibilities at Melink involve helping customers implement solar PV and geothermal HVAC systems at their commercial facilities. Seth holds a M.S. in Renewable and Clean Energy from the University of Dayton and a B.A. in Economics from Wittenberg University. Furthermore, Seth is an IGSHPA Accredited Installer and has also completed the Certified Geo Designer (CGD) and Certified Energy Manager (CEM) training courses.

Solar Industry News Updates: September 2020

Posted on by Seth Parker

Quickly catch up on the latest solar news in the solar industry…

Solar Module Price Fluctuations

Solar suppliers may be noticing recent pricing swings. Several events have led to price fluctuations in the solar supply market:

  1. In mid-July, a series of flash explosions at a GCL Silicon polysilicon plant reportedly took down more than 10% of the global supply of polysilicon. Polysilicon is the base material for making mono- and poly-crystalline modules. This shortage was almost immediately followed by a 60% increase in the price of polysilicon.
  2. In another blow to the polysilicon supply, severe flooding in southeastern China forced the closure of Tongwei’s polysilicon factory in Sichuan.
  3. Sourcing raw materials, specifically glass, has become a much longer process since the COVID-19 outbreak began. Glass shortages are resulting in higher prices and longer procurement windows for manufacturers.

These events are leading fluctuating pricing within the supply chain. Wood Mackenzie Power & Renewables estimates that bifacial module pricing will stabilize by 2021.

26% Federal Tax Solar Credit – Act Now!

If you are considering adding a solar energy system to your commercial facility, do not let the market’s price fluctuations dissuade you from moving forward. There is a generous 26% U.S. federal Investment Tax Credit available for 2020 projects. In 2021, this credit steps down to 22%, eventually dropping to just 10% in 2022.

To be eligible for the 26% credit, construction must commence (i.e. physical work start) by Dec. 31, 2020, and the project must be completed by Dec. 31, 2023. There are options available to purchase now but not fully build the project until a later time. As a solar EPC firm, Melink Solar can help you navigate this process and determine what is in your company’s best interest — contact us today. 

Solar Plant Growth

According to a survey of U.S. solar industry professionals, large solar plants have a longer operational life expectancy and are cheaper to run, citing the following:

  • Reductions in up-front expenses
  • Changes in capacity factors, financing costs, and tax rates
  • Improvements in project life
  • Operating expenditures

The assumed life of projects now averages 32.5 years, up from 21.5 years in 2007. This expanded lifeline comes with many benefits for solar plant owners. Read more on this topic.

Solar in the 2020 Election

In other solar news, the climate crisis is expected to be an important issue in the 2020 U.S. presidential election. Most supportive renewable policy in the U.S. is coming at the state level, and many are advocating the need for support at the federal level. President Donald Trump has generally held an unfavorable view of supporting renewables. Presidential candidate Joe Biden supports a national plan to convert the U.S. to 100% clean energy by 2035. Read more about the candidates’ solar policy.

Solar Industry News Updates: November 2019

Posted on by Seth Parker

Quickly catch up on the latest solar industry news…

Bifacial Solar Panels:

In January 2018, the Trump Administration introduced new trade tariffs targeted against China. The tariffs started at 30% and are set to step down by 5% every year until they expire in 2022. In June, the U.S. removed the 25% tariff on bifacial solar panels, as there is no major U.S. manufacturer producing them; therefore, there is no industry to protect. Four months later, the Trump Administration announced that effective October 28, 2018, the exemption would be rescinded.

In the latest twist, Solar Energy Industries Association (SEIA) has successfully won a temporary restraining order (TRO) on the withdrawal of the Section 201 import tariffs exemption on the importation of bifacial solar modules. The TRO is effective for 14 days through Nov. 21 unless the court rules on the matter earlier.

Bifacial modules offer the potential for lower LCOE (Levelized Cost of Electricity), due to higher module output with both sides of the solar panel generating electricity. Learn more about bifacial modules and Melink’s testing.

SunPower:

SunPower announced on November 11 that it plans to spin off its manufacturing business with a nearly $300 million investment by China’s Tianjin Zhonghuan Semiconductor. The move would effectively split the company into two: one part focused on overseas solar photovoltaic (PV) manufacturing, the other focused on distributing and installing solar panels and energy storage.

Ultimately, the partnership with Tianjin Zhonghuan Semiconductor to manufacture modules will form a new company, Maxeon Solar, that will be headquartered in Singapore. You can read more about this development here.

PV Patent Infringement:

Hanwha Q Cells attempted to shut competitors out of the U.S. market by filing a complaint in March that Longi Solar, Jinko Solar, and REC Group were all infringing on a patent filed in 2008. It now appears that all three companies will emerge victorious, as the case is now stayed with a judgment of non-infringement expected in the coming weeks, according to a filing from the U.S. International Trade Commission.

Hanwha does have a few avenues to challenge the outcome, and the company stated in an email that it plans to “immediately appeal” the determination to commissioners once possible.

Solar PV Module Prices About To Drop Over 30%

Posted on by Seth Parker

Over the last five years, commercial Solar PV prices have dropped by 58%, making the renewable source of solar energy more accessible to the average consumer. And with recent news from China, we know solar module prices are about to plummet once again. Earlier this year, you might have heard about the recent tariff on solar modules and thought to yourself that now may not be a good time to invest in solar for your business, but that is simply not the case now. The Chinese government recently announced an abrupt withdrawal of support for their solar PV market, which will lead to installed capacity decreasing by 30-40% this year. China has halted approvals of new subsidized utility-scale solar plants and will limit the amount of smaller-scale distributed generation installed by shrinking subsidies it provides to solar generators.

The reduction in installed capacity is expected to be around 20 gigawatts. To put this into perspective the U.S. only installed 10.6 gigawatts of solar in 2017! This decision by the Chinese government is going to cause a huge global oversupply of modules. Bloomberg New Energy Finance (BNEF) has predicted this surplus in available modules will result in a 34% decline in multicrystalline solar module prices. This will likely completely counteract the 30% tariff implemented earlier this year and we are expecting to see the results of this in Q4 of 2018 and Q1 of 2019.

The Chinese government’s abrupt withdrawal of support for China’s solar PV industry is going to flood the global market with lower priced solar PV modules. If you want to take advantage of these ultra-low prices while there is more supply than demand, you will need to start your planning now. To receive trusted and certified assistance, contact us today for a free quote and financial analysis.