US Imports Of PV Modules Up To 50GW in 2023!

According to a survey recently released by Bloomberg New Energy Finance (BNEF), the U.S. added a record 42GW of renewable power generation facilities in 2023, most of which were photovoltaic systems.

The U.S. added 35GW of photovoltaic power plants and rooftop PV systems in 2023, while wind power facilities added the lowest level of installed capacity since 2015, only 7GW, and has been declining for four consecutive years.

The U.S. will generate 23% of its total electricity from renewable sources in 2023.

Bloomberg New Energy Finance estimates that the growth in installed renewable energy capacity puts U.S. carbon emissions at 6,229 million metric tons in 2023, a 1.8 percent drop from the previous year. This is the first year-over-year decline in U.S. carbon emissions since 2020. In addition to 2020, the emergence of such low carbon emissions dates back to 1987.

The share of coal-fired generation is also declining as renewable generation continues to rise as a share of the total U.S. energy mix. From January 2018 to December 2023, the installed capacity of coal-fired power plants operating in the U.S. declined by 81.5 GW. an additional 43 GW of coal-fired power plants will retire in the U.S. by 2030, according to coal-fired power plant owners' retirement plans.

In the last year, the cost of debt and permitting issues have posed challenges to the development of renewable energy, but strong demand from businesses and utilities combined with more stable tax credits have overcome these obstacles. However, these factors affected the wind and PV sectors differently.

The installed capacity of PV systems soars in the US

Despite higher costs and supply chain uncertainty, the U.S. PV market has benefited from tariff exemptions imposed on PV cells and PV modules imported from Southeast Asian countries, with 78% of U.S. imports of PV modules in 2023 coming from Southeast Asian countries.

The U.S. imported 50GW of PV modules in 2023, almost double the amount compared to 2022. According to a report by Bloomberg New Energy Finance, high demand and a favorable tax credit system have also led to strong growth in the U.S. PV market.

U.S. regulations aimed at preventing the importation of forced labor-related goods have forced large Chinese PV module makers to open wafer manufacturing plants in Vietnam and source polysilicon from non-Chinese suppliers. Producing wafers outside of China allows PV module manufacturers to prove to U.S. Customs and Border Protection that polysilicon made with so-called forced labor has not entered the U.S. PV module supply chain.

The U.S. government is concerned that the PV module supply chain may not be as clearly distinguishable as claimed. China's polysilicon exports to Vietnam soar from 639 tons in 2022 to 4,970 tons in 2023.

Rapid growth in installed capacity of battery energy storage systems deployed in the United States

Bloomberg New Energy Finance (BNEF) estimates that the U.S. deployed 7.5GW of battery energy storage systems in 2023, a 62% year-on-year increase, bringing its cumulative total installed capacity of battery energy storage systems deployed to 19.6GW. Despite the fourth consecutive year of record-breaking capacity additions, the U.S. energy storage market was overtaken in 2023 by China, which now stands as the world's largest energy storage market.

Tax credits and other incentives have spurred the deployment of and investment in energy storage systems. Funding for the increased duration and grid benefits has also increased in 2023, with the U.S. Department of Energy announcing $13 million in grants for the construction of pumped-storage generation facilities and $505 million in grants for long-duration energy storage projects that provide power for 10 hours or more ..

U.S. Wind Power Market Growth Slows

The growth in installed capacity of new onshore wind farms in the U.S. slows in 2023 due to delays in connecting wind projects to the grid. At the same time, it will take some time for the tax credits provided by the Inflation Reduction Act to support the construction of new wind farms to translate into an increase in installed capacity.

In addition, the tax credits can benefit regions and developers that already have a large number of wind power facilities, but it also means that the grid in those places can become congested, which can prevent the construction of more wind farms.

The U.S. offshore wind market is also struggling to make progress in 2023. Several offshore wind projects have been canceled and contracts renegotiated due to high costs for wind power developers and uncertainty about inflation, supply chain issues, and whether projects will qualify for tax credits. About half of the installed offshore wind capacity in the U.S. faces these challenges.

However, some U.S. states continue to procure offshore wind projects, more ocean areas are being leased for offshore wind project development, regulators are providing support, and some developers continue to invest in offshore wind projects.

According to the U.S. PV Market Insights Q4 2023 report published by Wood Mackenzie and the American Photovoltaic Industry Association, the U.S. installed capacity of PV systems installed in the third quarter of 2023 amounted to 6.5 GW, an increase of 35% compared to the same period last year, and an increase of 1% compared to the previous quarter.