U.S. Solar Industry Faces Challenges and Opportunities in Pricing and Production
The U.S. solar industry faces challenges and opportunities in pricing, manufacturing, and supply chain development. Talon PV and First Solar are among the manufacturers aiming to boost domestic production.
Talon PV, in collaboration with Fraunhofer ISE, plans to commence 4-gigawatt production of high-efficiency TOPCon solar cells by the end of 2026. First Solar, a leading solar module producer, is also expanding its U.S. footprint. However, delivering promised prices is complex due to manufacturing intricacies and workforce development. Pricing at RE+ Las Vegas varied, with some estimates being overly optimistic.
Realistic pricing and supplier evaluation are vital for sustainable project development. Contractual protections ensure project viability and bankability. The industry should consider long-term sustainability of quoted prices and production volumes. Starting Jan. 1, 2026, compliance with Foreign Entity of Concern (FEOC) restrictions will be mandatory.
The U.S. solar industry has the potential to build a competitive and resilient domestic supply chain. Key factors include track record, permitting, and workforce skills. Ultra-low price points, while attractive, may not be sustainable without heavy support. The industry must balance ambition with realism to ensure long-term success.
