If you stay up-to-date on current news, have been to the grocery store, the gas pumps, a restaurant, or shopped online, you’re probably familiar with the shortage on just about everything. That shortage includes the materials needed to make solar systems.‍

Not only are suppliers struggling to keep up with demand, there are also additional duties and tariffs placed on solar imports to prevent things like forced labor or dangerous materials from being used. Luckily, the US announced that it wouldn’t place any more tariffs on these products for the next two years.

However, the tariffs are only one of the many factors influencing the solar industry. One of the largest threats to the market is the current supply chain issue.

“Like numerous other supply chains, the solar module supply chain has felt significant pressure as a result of the COVID-19 pandemic. Specifically, the fallout from COVID-19 has resulted in (i) a shortage of the shipping containers that ship cargo, (ii) a spike in demand for steel (iii) too few ships and dock workers, (iv) a shortage of truck drivers, (v) an increase in gasoline prices, and (vi) an increase in key solar panel components such as polysilicon, all of which have caused an increase in shipping cost as well as significant shipping delays. Additionally, city-wide shutdowns in Asian export hubs have halted the manufacturing of various components and raw materials for months.” -PV Magazine

Just one of these factors alone could cause uncertainty in the industry. The effect all these factors have together is next level. People in every stage of the process have had to adjust their expectations and become more flexible.

While there are several factors working against the solar supply chain, there are many working for it.

One of our biggest assets in correcting supply chain issues is ourselves. By developing the U.S. PV manufacturing market, we can “mitigate global supply chain challenges and lead to tremendous benefits for the climate as well as for U.S. workers, employers, and the economy.” Says the Office of Energy Efficiency and Renewable Energy. “Significant growth in U.S. manufacturing across the supply chain is possible with incentives that offset the higher cost of manufacturing in the United States.”‍

By establishing a stronger supply chain in the US, we will have better control over the quality, consistency, pricing, and lead times of panels. Sunrun, one of the leading residential solar companies has been working on this for years. Because Frugll works closely with Sunrun, we are able to tap into the progress they have already made.

We are not immune to the challenges faced by the solar industry as a whole, our experts still recommend being flexible with your installation process. However, we are optimistic about the future of our industry and the innovations that will come from our current obstacles.

Want to learn more about what solar can do for you? Talk to our experts today.