Despite the considerable tax benefits being granted, the US solar industries aiming to build solar factories may face difficulties in the wake of President Joe Biden’s drive for sustainable energy programs.
Many of these businesses are probably going to suffer a lot or maybe collapse entirely, according to a recent research by BloombergNEF.
Solar energy has been at the forefront of these initiatives under the Biden administration, which has been actively promoting renewable energy projects.
The administration established alluring financial incentives to promote the expansion of solar manufacturing in the nation as part of its resolve to halting climate change and transforming to a greener economy.
The BloombergNEF analysis raises questions about these ventures’ viability, though. While tax incentives are intended to support the expansion of solar manufacturing, a number of obstacles may prevent this success.
The difficulties vary from raw material shortages and supply chain delays to heightened international competitiveness.
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China’s Dominance in Solar Panel Market Stifles US Firms
Worldwide sectors have been affected by the recent particularly severe supply chain disruptions and material shortages. These issues have not spared the solar manufacturing industry, with some businesses finding it difficult to obtain the supplies they need to operate.
Increased production costs and significant delays in getting final goods to market might result from supply chain delays.
Additionally, international players, notably those from China, are a fierce competitor in the solar manufacturing industry. Due to economies of scale and government support, Chinese companies have long dominated the solar panel market.
The ability of US-based firms to compete successfully and profitably has been hampered by this dominance.
Concerns have been expressed concerning the future of these projects and the efficacy of the Biden administration’s renewable energy policies due to the uncertainty in the solar factory industry.
Addressing supply chain disruptions and increasing domestic competitiveness are essential if the US is to gain a solid foothold in the solar manufacturing industry.
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Source: www.bloomberg.com