According to the US Energy Information istration, in 2023 the U.S. electric power sector experienced a reduction in delays for installing new utility-scale solar photovoltaic (PV) projects compared to 2022. Solar developers postponed the scheduled online date for an average of 19% of planned solar capacity in 2023, down from 23% in 2022. Despite this improvement, the percentage of solar capacity reporting delays remained higher than the average observed between 2018 and 2021. 1r315c

This decrease in delays coincided with an increase in solar additions to the grid by utilities. In 2023, the electric power sector brought online 19 gigawatts (GW) of new utility-scale solar PV generating capacity, marking a 27% rise from the existing solar capacity at the end of 2022. Solar power is emerging as the fastest-growing source of new electricity generation in the United States, driven by declining costs, tax credits, and ive policies incentivizing the integration of renewable energy sources.

How does it work?

The developers responsible for new power-generating capacity provide the initial planned operational date of a project through the Form EIA-860 survey. Starting twelve months prior to the anticipated online date, they request monthly updates from developers regarding the project's status and schedule. The Preliminary Monthly Electric Generator Inventory contains the most current information on both existing and forthcoming U.S. power generators, while summaries of capacity by energy source are available in our Electric Power Monthly.

The frequency of developers reporting project delays can vary significantly from one month to another. Nevertheless, the proportion of total planned solar capacity experiencing postponed operational dates showed an upward trajectory throughout 2021 and 2022, peaking at 33% of planned capacity delayed in December 2022. The duration between the initial reporting of a planned solar project on Form EIA-860 and its operational commencement varies considerably. According to analysis conducted by the Lawrence Berkeley National Laboratory on generator project interconnection timelines, the median duration for a solar project spans 25 months, from the agreement g for interconnection to the commercial operation date.

Delays in projects can stem from various factors, such as challenges with permits, construction, or equipment testing. An important consideration influencing solar installations is the accessibility of building materials.

Moreover, solar deployment can be impacted by U.S. trade policies. Currently, tariffs affecting Chinese manufacturers of solar PV cells and modules imported from China are suspended by a Presidential Proclamation until June. Upon the expiration of the proclamation, tariffs will once more apply to imported crystalline silicon originating from China, as well as certain companies operating in Cambodia, Malaysia, Thailand, and Vietnam.

According to the latest data from the EIA, the electric power sector augmented approximately 6 GW of net summer solar capacity during the first quarter of 2024. Among solar projects slated for operation before the conclusion of 2024, roughly 24 GW are undergoing testing or construction, while approximately 6 GW are in the permitting or planning phase. An additional 26 GW of new solar capacity is slated for commissioning in 2025, with the majority currently in the permitting stage.