Scientific American magazine says solar will soar in 2022, but with the condition that supply chains perform on deliveries and keep cost increases down. Meanwhile, some installers like Solar Integrated Roofing Corp. (OTC PINK: SIRC) are staying away from the fray by using imported panels and solar panels. In fact, as it acquires more companies it is able to keep a lid on cost hikes by becoming a larger and smarter consolidated buyer for its growing family of companies.
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Magazine Scientific American Says Solar Could Soar In 2022 but All Depends Upon Supply Chain Deliveries And Cost Hikes; Solar Integrated Roofing Corp. (OTC PINK: SIRC) Sourcing Solar Batteries And Panels Domestically To Side-Step Imports
The Scientific American concluded that the supply chain interruptions in solar, and resulting price hikes, are only temporary in the industry’s growth.
Thats good news for solar and installers like SIRC. In fact, the shortages have only made SIRC stronger. In a live Q&A session this week, management revealed it is installing more of its solar storage batteries from Enphase Energy (NASDAQ: ENPH). Enphase is a California-based international company.
Supply chain issues have impacted solar just as it has hurt other industries, especially in construction. Shortages and price hikes have been common in solar installations.
But as SIRC has grown its family of companies — note that earlier this week it announced it signed LOIs to buy seven more — it has used its larger footprint to be become a bigger buyer for solar and roofing supplies. Pablo Diaz, SIRC president, told the financial community in the live Q&A earlier this week that the Company had actually enjoyed a better buying percentage against projects as it internally used its larger leverage to buy materials together.
The resale is that SIRC is a better buyer. And when log-jams appear in normal supply lines for solar storage batteries, the company goes to a major supplier like Enphase to buy more product from a large company.
Meanwhile, SIRC is in a hot space. Confirming that is the new ‘US Solar Market Insight Report’ by Wood Mackenzie. It predicts that solar deployments will triple in the US between 2022-2026 to more than 300 GW. The catch is that to reach this level an additional 43.5 gigawatts (GW) would need to be installed with the help of federal tax incentives in the Build Back Better (BBB) Act. Passage of the bill remains possible, but is less and less likely in its current form. Solar Integrated Roofing Corp. (OTC PINK: SIRC) Would Benefit From the projected solar 2022-2026 Growth.
In his press conference this week, President Biden sas the BBB bill is not dead — and he will instead present it to the Senate for passage in pieces. Only time will tell if this strategy is successful.
The Wood Mackenzie report noted that solar could overcome headwinds if BBB passed in its current form. Solar deployments would triple by 2026 and help offset an additional 83 million tons of carbon.
Unfortunately, headwinds include supply shipping postponements and pricing, the report finds. While solar prices of components dropped 12% between Q1 2019 and Q1 2021, it says price spikes in the past six months have erased all these savings in this two year period.
Michelle Davis, principal analyst at Wood Mackenzie and lead author of the new report, says, “The U.S. Solar Market has never experienced this many opposing dynamics.”
She adds, “On the one hand, supply chain constraints o\continue to escalate, putting gigawatts of projects at risk. On the other, the Build Back Better Act would be a major market stimulant for this industry, establishing long-term certainty of continued growth.”
She pointed out that Federal tax credits in BBB would help stimulate solar sales and deployments in nascent states. For example, Texas would add 7 GW of additional solar capacity over the baseline forecast by 2026, reaching 44 GW of cumulative capacity. But the passage of BBB in some form is a necessity.
Another report sees solar rooftop and other renewable energy sources growing over the next three years to generate at least 30% of the nation’s capacity. New solar panel technologies and mid-January solar incentive grants are helping drive the growth in solar installations and more renewable energy, site ENRCalifornia recently reports. These positive moves are tailwinds for solar installers, such as Solar Integrated Roofing Corp.(OTC PINK: SIRC). Today, renewable energy only generates for 25% of the U.S. total capacity.
The move within three years to generate 30% of the nation’s electrical capacity — from just 25% today — needs momentum from new funding and technology. This includes incentive awards for new rooftop and small-scale solar projects.
Also, new technology can bring down installation costs. One large roofing company has a new line which incorporates solar technology into standard roofing tiles. Only nailing guns and regular roofing crews are needed. They could bring a lot more solar to the U.S. construction industry, if successful.
SIRC is well positioned in this strategy because it is an authorized installer of Tesla’s (NASDAQ: TSLA) PowerWall Rechargeable Solar Battery Systems.
Homeowners and small business, which are potential buyers of solar systems, can see clearly that 2022 offers them a rare chance to beat central grid electricity increases. They can also move now to beat the solar federal tax credit drop from 26% to 22% in 2023. Solar loan money is plentiful and low cost. The time to commit to solar is now at little or no cost.
The strategy overall means staying away from the peak-demand higher rate fees utilities seek to charge through higher ‘critical peak pricing’ from utilities. Homeowners can customize their solar savings by saving their solar-generated electricity for peak time usage — when electricity costs more from the central grid.
Solar and roofing remain core businesses for SIRC. Its work-around can mean potential buyers of solar systems can higher the price with renewable solar batteries, but long term beat higher energy costs — while using carbon fighting rooftop solar.
Learn more about SIRC at https://www.solarintegratedroofing.com/corporate-governance/leadership/.
Source: Stock Market Press
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