Are Solar Supply Chain Issues Impacting Your Solar Project?

Are Solar Supply Chain Issues Impacting Your Solar Project?

Good news for the environment: the solar industry is booming. Installation companies are seeing increased demand for solar panels and other renewable energy sources. However, the supply chain needs to iron out a few kinks. For now, some issues could slow down your project implementation.
Current Solar Supply Disruptions Affect Manufacturers And Consumers

Supply chain issues are nothing new to businesses but can significantly impact project installations. Right now, the most common problems include the following:

  • Component Shortages
  • Labor Shortages
  • Shipping Delays
  • US Government Investigations
  • Rising Prices

Let’s look at each of these briefly.

Component Shortages Impact The Supply Chain

China dominates the production of many products used in the solar industry, including polysilicon, a key component of panels. Other parts produced chiefly in China include solar cells, silicon ingots, and completed panels. However, China also controls 65% of the world’s lithium processing and refining capacity; most solar systems use lithium batteries. With these shortages, it’s harder to source components for many industries.

Chinese Labor Shortages & The Global Pandemic

Like most countries, China was hit hard by Covid-19. As a result, many municipalities enforced strict lockdowns, forcing many industries to halt. Production still hasn’t fully caught up, though projections show the situation continuing to improve.

The Shipping Industry: Another Pandemic Casualty

The China-to-US freight industry was also affected by Covid-19 due to the closure of Chinese factories and decreased demand from the US. As a result, many freight companies have had to reduce their operations while others have gone out of business.

Freight costs for all kinds of Chinese goods, including solar panels, lithium batteries, and other industrial components, have risen dramatically even as delivery times have increased.

How the US Government Affects The Solar Supply Chain

The US Government is investigating whether manufacturers in China have been circumventing tariffs by using Southeast Asian labor for manufacturing products using Chinese raw materials and capital investments. This investigation is having a ripple effect throughout the industry. US companies are worried that new tariffs will be imposed, increasing prices. The uncertainty is causing some companies to delay or cancel orders, further impacting the supply chain.

The Cost Of Solar Installation Will Continue To Rise

No industry seems immune to inflation, including the solar industry. The abovementioned issues have all resulted in rising prices, and the supply-chain squeeze will likely continue for some time.

Lock In Your Home Solar Price Now

While it is true that these supply chain issues are affecting installation companies nationwide, Las Vegas property owners can still take advantage of Lifetime Solar’s current rates. So even though you may have to wait a bit longer for your new panels, you’ll be saving money in the long run by signing up now.

We have the best systems on the market, including Sunpower and Tesla. So if you’ve been on the fence about solar power, now is the time to invest. Call us today to set up a free consultation.

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About Lifetime Solar

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