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Released April 15, 2020 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--While most U.S. industries are seeing slowdowns and delays due to the COVID-19 pandemic, solar power projects are facing a particularly rough time, as many of their components are manufactured in other countries, including China. Trade disruptions are making these parts harder to get, pushing out project dates and possibly affecting projects' eligibility for the U.S. solar Investment Tax Credit (ITC), which currently mandates a 26% credit against tax liability if a project begins construction or a company spends 5% of a project's capital cost before the end of the year. The ITC will step down to a lower 22% rate in 2021. In addition, safety precautions, such as stay-at-home orders and reduced numbers of on-site workers, are slowing projects that have already begun. While there have been calls to extend the 26% rate of the ITC into next year, Congress has not acted on this yet. Industrial Info is tracking $996 million in U.S. solar projects affected by COVID-19.
In the U.S., among the largest solar projects to face delays due to a state shelter-in-place orders is Clearway Energy Incorporated's (San Francisco, California) planned 200-megawatt (MW) solar farm near Newberry Springs, California, in the south of the state. The facility will include three solar arrays with ground-mounted, single-axis panels. Construction was previously planned to kick off this summer, but this has now been pushed off until the fourth quarter. For more information, see Industrial Info's project report.
Some completed projects are facing startup delays. Near Odessa, Texas, 174 Power Global Corporation (Irvine, California) has completed construction on its 150-MW Oberon solar plant. However, due to COVID-19, there's been a delay in connecting the project to the grid, although this is expected to happen in the next few weeks. For more information, see Industrial Info's project report.
Examples of other slowed projects include Consolidated Edison Incorporated's (NYSE:ED) (New York, New York) CED Crane solar farm near Crane in West Texas, which will use about 355,000 photovoltaic panels on a single-axis tracking system. Construction is expected to begin soon, but due to COVID-19, crews have been limited to 10 people, slowing construction, which is planned to be completed in the summer of 2021. For more information, see Industrial Info's project report.
Even projects planned to start construction next year are being affected. In Chelmsford, Massachusetts, BlueWave Solar (Boston, Massachusetts) plans to construct a 1.3-MW solar array on the site of a former landfill. The project was initially planned to begin construction in first-quarter 2021; however, because of shipment delays caused by COVID-19, the construction start date has been pushed back four months, into the summer. The project is expected to be completed by the end of the year. For more information, see Industrial Info's project report.
Some companies are putting a blanket stop on projects. For example, Walmart Incorporated (NYSE:WMT) (Bentonville, Arkansas) has put on hold plans to install solar arrays at least 18 of its facilities, such as its distribution center in Spring Valley, Illinois, where a 1-MW array was planned. Construction had already begun on the project, but it has now been placed on indefinite hold in the hopes that it will be able to resume in the coming months. For more information, see Industrial info's project report.
Without government-sponsored tax credits, the situation for solar projects outside of the U.S. also appears grim. According to Norwegian consulting firm Rystad Energy, renewable energy projects in the procurement phase are facing increased real costs as currencies slide in value against the U.S. dollar, in which many components are priced. The firm said projects in the procurement phase in Australia, Brazil, Mexico and South Africa could see capital cost increases of up to 36% as their currencies fall against the dollar.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
In the U.S., among the largest solar projects to face delays due to a state shelter-in-place orders is Clearway Energy Incorporated's (San Francisco, California) planned 200-megawatt (MW) solar farm near Newberry Springs, California, in the south of the state. The facility will include three solar arrays with ground-mounted, single-axis panels. Construction was previously planned to kick off this summer, but this has now been pushed off until the fourth quarter. For more information, see Industrial Info's project report.
Some completed projects are facing startup delays. Near Odessa, Texas, 174 Power Global Corporation (Irvine, California) has completed construction on its 150-MW Oberon solar plant. However, due to COVID-19, there's been a delay in connecting the project to the grid, although this is expected to happen in the next few weeks. For more information, see Industrial Info's project report.
Examples of other slowed projects include Consolidated Edison Incorporated's (NYSE:ED) (New York, New York) CED Crane solar farm near Crane in West Texas, which will use about 355,000 photovoltaic panels on a single-axis tracking system. Construction is expected to begin soon, but due to COVID-19, crews have been limited to 10 people, slowing construction, which is planned to be completed in the summer of 2021. For more information, see Industrial Info's project report.
Even projects planned to start construction next year are being affected. In Chelmsford, Massachusetts, BlueWave Solar (Boston, Massachusetts) plans to construct a 1.3-MW solar array on the site of a former landfill. The project was initially planned to begin construction in first-quarter 2021; however, because of shipment delays caused by COVID-19, the construction start date has been pushed back four months, into the summer. The project is expected to be completed by the end of the year. For more information, see Industrial Info's project report.
Some companies are putting a blanket stop on projects. For example, Walmart Incorporated (NYSE:WMT) (Bentonville, Arkansas) has put on hold plans to install solar arrays at least 18 of its facilities, such as its distribution center in Spring Valley, Illinois, where a 1-MW array was planned. Construction had already begun on the project, but it has now been placed on indefinite hold in the hopes that it will be able to resume in the coming months. For more information, see Industrial info's project report.
Without government-sponsored tax credits, the situation for solar projects outside of the U.S. also appears grim. According to Norwegian consulting firm Rystad Energy, renewable energy projects in the procurement phase are facing increased real costs as currencies slide in value against the U.S. dollar, in which many components are priced. The firm said projects in the procurement phase in Australia, Brazil, Mexico and South Africa could see capital cost increases of up to 36% as their currencies fall against the dollar.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
