The RE+ photo voltaic tradeshow in Anaheim, California is winding down on the fourth day of proceedings, with attendees slowly streaming out of a venue which has been abuzz with the joy bestowed by the Inflation Discount Act (IRA), though many quick time period questions stay.
PV Tech has been on the bottom for each day of the occasion and beforehand reported how the IRA has taken centre stage at this yr’s RE+. From producers and builders to O&M firms and software program suppliers, attendees have discovered it arduous to understate the impression of the US$369 billion bundle.
However PV Tech has additionally been desirous to stress that the IRA’s impression gained’t actually be felt till 2024, with the module provide constraints of the previous couple of years set to proceed within the quick time period.
Within the right here and now, then, photo voltaic stakeholders have to construction their funds and operations in order to be ready to take advantage of essentially the most from the IRA’s incentives when the begin to make a distinction. A number of giant US builders have informed PV Tech they’re already going into preparation mode and designing methods to finest benefit from the IRA.
The IRA will incentivise manufacturing and enhance undertaking economics however there are nonetheless a number of boundaries to larger photo voltaic installations, particularly within the US. First is to handle the US’ interconnection issues which proceed to push up undertaking prices and uncertainty in addition to inflicting growing delays. PV Tech has reported on potential options to the US’ grid woes following occasions and conversations held at RE+.
There may be progress being made on this entrance, however it’s gradual. The IRA containers US$2 billion for transmission enhancements and the Division of Power’s (DOE) i2X initiative will provide some useful insights and a 5 yr highway map. In the meantime, Senator Joe Machin’s Energy Independence and Security Act of 2022, revealed at this time, will speed up the development of transmission infrastructure and supply larger allowing powers, even when it does assist fuel pipelines too.
Except for transmission and interconnection, expertise and labour shortages throughout the US photo voltaic sector had been additionally a subject of scorching dialogue at RE+. Whereas work on this entrance is underway and extra incentives within the IRA will assist drive up workforce ranges, addressing labour shortages and plugging expertise gaps is vital in any respect phases of the availability chain, from module makers to residential installers. Two years will not be numerous time to do that.
On prime of this, you will have a great deal of uncertainty concerning how the IRA shall be applied in apply, with an absence of particular particulars in the case of home content material necessities or accessing adders underneath the scheme inflicting the best authorized uncertainty within the US PV sector.
All in all, nevertheless, there was an awesome sense of hope, optimism and pleasure about the way forward for US photo voltaic at this yr’s present, with a really transformation assist bundle set to basically reshape the nation’s, and maybe the world’s, photo voltaic panorama.
