Source: Energy Information Administration. Analysis by Beacon Economics
Highlight
- As of 2022, California accounted for 40 percent of small-scale solar PV net generation in the residential sector nationwide, 30 percent in the commercial sector, and 71 percent in the industrial sector (i.e., at industrial facilities). Small scale solar PV generation experienced a steady growth in both California and the U.S. Compared to 2021, generation in the commercial sector grew at a similar pace in California (+10.9%) as in the rest of the U.S. (+14.0%). However, generation in the residential and industrial sector grew faster in the rest of the U.S. than in California. Specifically, small scale solar PV net generation in the residential sector in California grew by 21.2 percent while the rest of the U.S. grew by 26.4 percent. Additionally, net generation in the industrial sector for the rest of the U.S. grew twice as fast—California grew 4.8 percent while the rest of the U.S. grew by 8.0 percent. Due to the supply-chain challenges in the first six-months of 2022, new solar PV generation in both California and the rest of the U.S. grew more slowly in 2022 than in 2021. Despite this, it is important to note that California is one of the nine states in the U.S. where solar energy delivered more than 10 percent of the electricity in 2022.
Challenge
- The Biden administration has taken action to address supply chain-related delays in solar projects. In June 2022, the president authorized a 24-month exemption from tariffs for solar panel imports from Cambodia, Malaysia, Thailand and Vietnam and invoked the Defense Production Act to spur production of solar components.144
144 The White House. Memorandum on Presidential Determination Pursuant to Section 303 of the Defense Production Act of 1950, as amended, on Solar Photovoltaic Modules and Module Components. June 06,2022. Assessed August 15, 2022. Available at: https://www.whitehouse.gov/briefing-room/statements-releases/2022/06/06/
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