As the global demand for clean energy continues to grow, governments around  the world are interested in the most direct clean energy - solar power  generation, and have launched numerous fiscal policies to support it. But the  key driver for any product is cost reductions, as the cost of solar power rises  in 2021 as a result of widespread economic malaise, supply chain constraints,  and more.

　　Costs for some parts of the solar industry rose 18 percent last year,  according to a report released Thursday by the Solar Energy Industries  Association and Wood Mackenzie. This is the first year that prices have risen in  all three markets (residential, commercial and utility-scale) since Wood  Mackenzie began tracking the data in 2014.

　　In addition to supply chain bottlenecks, trade actions and policy  uncertainty are weighing on the industry, the report said. Nonetheless, the  solar industry added 23.6 gigawatts of new capacity during 2021, a 19% increase  from 2020 levels. Texas added the most solar for the year, surpassing California  for the first time.

　　On the residential side, installations increased by 30% year-on-year to a  new record of over 500,000 units.

　　The infrastructure added 17 gigawatts of capacity, also a record. But  installs ended up being lower than expected. A third of infrastructure-scale  projects that were supposed to be completed in the fourth quarter were delayed  by at least a quarter. Additionally, 13% of projects scheduled for completion  this year were delayed by a year or more, or cancelled outright.

　　The price hikes in the second quarter of 2021 and last year first started  and plagued the industry for the rest of the year. Analysts say things could get  worse before an inflection point occurs.

　　Michelle Davis, principal analyst at Wood Mackenzie and lead author of the  report, said: "Last year's supply chain constraints will hit capacity hardest in  2022, down 7% from 2021. "But our forecasts show that long-term growth will  outweigh these short-term challenges, especially if the federal government  passes clean energy incentives."

　　Davis said that if the Investment Tax Credit Act is passed, solar capacity  will increase sixfold by 2032. The U.S. International Trade Commission is the  linchpin of solar subsidies, including a better rebuilding plan proposed by  President Joe Biden. On the other hand, without policy action, the U.S. will  reach only 39 percent of what Biden needs to decarbonize by 2035, the report  said.

　　The report comes as the Russian-Ukrainian conflict is deteriorating and  conversations around energy security are reviving. Opinions on next steps are  mixed - some say oil and gas production needs to increase, while others believe  high oil and gas prices should accelerate the energy transition. Still others  say that all of the above positions need to be taken when it comes to  energy.

　　Abigail Ross Hopper, SEIA CEO and President, said: "In the face of global  supply uncertainty, we must increase clean energy production and eliminate our  dependence on adversary countries for energy needs". "The solution is already in  front of policymakers," she said, referring to the ITC and investment in  manufacturing.

　　She added that "America's energy independence depends on our ability to  deploy solar energy, and the opportunity before us has never been more obvious  or urgent."

　　SES Power believes that this situation is based on a special background and  a special period, and in the long run, the cost of solar power generation will  only gradually decrease. This situation is unsustainable, just like the rapid  rise in the price of raw materials for lithium batteries. Our 12V100Ah,  24V100Ah, 36V100Ah, 48V100Ah, household energy storage HESS (3KW) using EVE,  CATL, BYD square aluminum lithium iron phosphate batteries, these products are  often used in the energy storage of solar power generation, and they are also  affected by the impact of price increases. Of course, the price of hardware  accessories is also rising. Therefore, for a period of time in the future, UPS,  data center, energy storage system, photovoltaic power generation, home energy  storage, power battery replacement, electric product battery, etc. will all show  a trend of rising prices.