Sinking Solar Prices Seen as Threat to US Manufacturing

Plunging solar panel prices may threaten plans for new US factories despite the sector’s recent explosive growth, a new report warns.

Solar module manufacturing capacity in the US nearly doubled in 2023, from 8.5 gigawatts to 16.1 gigawatts, according to the report from Wood Mackenzie and the Solar Energy Industries Association. But prices tumbled, with the cost of two-sided modules dropping 31%.

Low prices, combined with economic uncertainty, “could make it difficult for US manufacturers to follow through on announced facilities,” the report says. The authors also point to the political risk posed by the upcoming presidential election, in ...