he U.S. solar industry is anticipated to witness a gradual expansion in 2024, buoyed by a decrease in electricity prices and support from the Inflation Reduction Act (IRA), according to SolarEdge Chief Financial Officer Ronen Faier.
Speaking at a Goldman Sachs conference in Miami, Florida, Faier informed investors that the industry had reached a bottom point in the last two quarters. He attributed the decline in demand for solar products in the United States during the latter part of the year to macroeconomic uncertainties.
SolarEdge foresees a positive shift in demand, pointing to expectations of lower interest rates in the current year. Faier highlighted the improving economics and prices of solar products and components, particularly in key solar markets like California, due to incentives from the IRA.
In a move to support the energy transition with domestically manufactured products, the U.S. Department of the Treasury unveiled proposed guidelines in December for manufacturers of clean-energy products seeking to claim a tax credit under the IRA.
Additionally, Faier mentioned that battery installation is poised for continued growth in both the U.S. and European markets. This growth is expected as manufacturers work through substantial inventories of battery panels and other equipment.
The developments indicate a cautiously optimistic outlook for the U.S. solar industry in 2024, with a confluence of factors contributing to its anticipated modest growth.