The Inflation Reduction Act (IRA) of 2022 became the largest single investment in climate and energy in US history. With the new rule, the country committed to becoming a world leader in domestic clean energy manufacturing and aligned on the path to achieving the Biden Administration's climate goals, including a net-zero economy by 2050.

To achieve these goals, the US has sought, among other things, to boost the solar industry as never before. A clear example is that the US solar industry installed 6.1 gigawatts (GW) of solar capacity and had its best first quarter ever, according to the US Solar Market Insight Q2 2023 report published by the Solar Energy Industries Association (SEIA) and Wood Mackenzie.

The document revealed that the record quarter was largely driven by easing supply chain challenges and delayed progress on solar projects. The report's findings also noted that the IRA has also spurred a wave of new manufacturing announcements, with domestic module capacity expected to increase from less than 9 GW today to more than 60 GW by 2026. At least 16 GW of module manufacturing facilities are under construction by the end of the first quarter. 2023.

According to Abigail Ross Hopper, President and CEO of SEIA, the United States is experiencing a solar manufacturing renaissance thanks to the clean energy incentives in the Inflation Reduction Act. “These pro-business, pro-growth policies support our communities and help to encourage private investments. Already, we're seeing a surge in demand for clean energy and more American solar products, a clear sign the bill is working” she said.

However, in an interview with Review Energy, Abby explained that in the last few years the country has had a considerable number of supply chain issues due to the pandemic, the threat of more tariffs, and the implementation of the Uyghur Forced Labor Prevention Act.

Therefore, she says, it is important to “focus our attention on diversifying our supply chain and producing more solar products in America. The solar and storage industry must also bolster community engagement and find solutions that grow a diverse, inclusive workforce and streamline permitting, interconnection, and transmission processes”.

The President and CEO of SEIA also explained that solar is being deployed widely across the United States and has opportunities to grow further in every state. And she asserted that action by state and local governments can help to accelerate deployment across the industry segments.

“The Inflation Reduction Act contains a comprehensive set of industrial policies that will help us encourage domestic manufacturing and onshore the solar supply chain. If we let these policies go to work for our economy, we will increase the global competitiveness of American solar products and make the United States a net exporter of American solar products”, she added.

After the storm comes the calm: veto of solar tariffs

During the first half of this year, the US solar industry was also threatened by legislation that sought to repeal the Biden administration's June 2022 proclamation to provide a two-year moratorium on new solar tariffs.

However, House lawmakers failed to win enough support to override President Joe Biden's veto of a measure that would have rescinded his moratorium on tariffs on solar equipment imports from four Southeast Asian countries.

Finally, Abby explained that “President Biden's veto is providing much-needed business certainty in the solar and storage industry. With this certainty in hand, companies will continue to create jobs and build domestic manufacturing capacity”.