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The 4.9 magnitude earthquake that struck Anaheim on the final day of RE+ 2024 barely dampened the excitement seen and felt at North America’s largest energy conference.
RE+ 2024, North America’s largest energy event, was as full of energy and action as the U.S. solar industry itself. Talks in sessions and on the exhibit floor focused on the Inflation Reduction Act (IRA) and the upcoming election, domestic content, portability, and bottleneck issues in interconnection and permitting, along with long lead times for electrical equipment. While the sector appears to be going full steam ahead, it would accelerate more quickly without these challenges.
Elections
In a briefing on the recently released US Solar Market Insight Q3 2024 report, experts from the Solar Energy Industries Association (SEIA) and Wood Mackenzie said that if a Republican administration wins the election, the IRA is unlikely to be repealed. Panelists agreed that some funds intended to cover tax incentives could be reallocated, but the IRA is having too large an effect on employment and income in both red and blue states for repeal to be attractive.
GONNA
At the “IRA Updates” session, Gary Hecimovich, a partner in the Washington National Tax Office of Deloitte Tax LLP, said that “the final rules have opened the floodgates to portability,” noting that Deloitte has advised on purchase transactions of up to $5 billion. “That shows how big this market is and that it is working.” Rodrigo Inurreta Acero, head of Mexico-U.S. federal affairs for EDP Renovables, said that EDP is committed to U.S. products and is finding the domestic production modules it needs thanks to the IRA.
Demand creates challenges
According to the Solar Market Insight Report for the third quarter of 2024, the figures achieved by the American solar industry are remarkable, although, according to Michele Davis, head of global solar energy at Wood Mackenzie, "we are entering a slower and more challenging phase of growth."
In the second quarter of 2024, the U.S. solar market installed 9.4 GW of capacity, marking a record second quarter for the sector. The utility sector alone installed 7.6 GW, up 59% from last year. But this growth is creating demand that is not unique to the solar sector. Interconnection delays, long lead times for electrical equipment, and other issues will lead to slower growth than the sector has seen in recent years.
Creative solutions
On the show floor, we saw manufacturer alliances bringing domestic content solutions to buyers, offering a one-stop shop that can also alleviate some of the operation and maintenance issues of dealing with multiple suppliers. US solar tracker supplier OMCO, for example, has partnered with module manufacturer Heliene for distribution and Create Energy for the C&I and centralised generation markets, providing trackers/modules/racks and other components in an integrated solution suitable for the domestic market.
US module manufacturer Mission Solar announced a partnership with Origami Solar, which uses Origami’s in-house produced steel structures to make modules more resistant to hail damage. Called “Defender,” the steel-framed modules are expected to be suitable for the domestic market.
Telling stories
The excitement and optimism surrounding the renewable energy sector was palpable at RE+, but we heard again and again that it’s time to tell the story. Not everyone is aware of the momentum, achievements and promise of clean energy, and “this is the time to tell it,” said Abigail Ross Hopper, SEIA President and CEO. Speaking to a packed room at the opening session, Hopper said that with the election approaching, “the stakes couldn’t be higher.” |
