Corona Virus and solar industry slowdown - A new economic imbroglio
The COVID-19 breakdown has triggered a slowdown, which is projected to turn into a recession in the post-pandemic era.
The Corona Virus pandemic has taken a toll on most of the industries. One-third of the planet is under lock down. Almost every industry has stopped working. From the oil industry in the east to the LED industry around the world, every business is facing the wrath of the pandemic.
The Solar industry is the latest victim of the pandemic. In 2019, solar panel installation went up by 23%, compared to 2018. The numbers are all set to go down by the corona virus fiasco.
According to CNBC, solar installations of over 13 gigawatts of capacity happened in 2019. Last year, solar energy topped the spot as a new top power source as well.
Solar energy accounted for 40% of the nation’s new electric generating capacity, followed by a 32% contribution of natural gas and 27% of wind energy.
What Do The Experts Say?
According to The Reuters,
The fallout from the pandemic has impacted both supply chains and demand in the fast-growing industry, and the president of the top U.S. solar trade group said its annual market report’s projection of 47% growth in 2020 would be ratcheted down in the coming weeks and months.
It was still too soon to incorporate the pandemic’s impact into the sector’s outlook with certainty, the Solar Energy Industries Association said.
According to Abigail Ross Hopper, the President of the Solar Energy Industries Association, the solar industry, like all the other industries, is facing an unprecedented challenge. Supply chains are down, and integral components of the solar installations, including solar panels and solar inverters, are not enough in numbers to meet the demand. As the government has advised people to limit social contact, labor shortages are apparent.
In her open letter, Ross Hopper, also commented about the tax disruptions likely to happen due to the shortage of delivery; “it is possible that companies could be unable to meet project delivery deadlines, which could change the tax treatment or eligibility for state incentives for those projects. We are looking into this and other implications at the federal and state level and advocating for policies as appropriate to accommodate the unexpected delays and detrimental impacts our industry is facing.”
Most of the solar companies source their materials or have set their manufacturing plants in Asian countries. According to EnergySage, the top solar panel manufacturers of the nation were headquartered in China, like Jinko Solar and LONGi Green energy technology. In China, things are now up and running; it is still going to be a hard time as the global economic tailspin is about to start. Many companies settled in other countries like Malaysia, Vietnam, Singapore, Thailand, and South Korea are also facing the backlash.`
How Is The Road Out Of This Crisis?
Covid-19 has resulted in economic imbroglio.
People are not spending money, as most employers are shut down.
Existing demands are being fulfilled because industries are shut down.
An end to this pandemic is the only hope for any industry to survive. Every country has to work synergically with others to alleviate us all out of an unprecedented crisis. We all are in this together.
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