If the past two years of adjusting to a global pandemic have taught us anything, it’s that there are no guarantees in life or business. COVID-related supply chain disruptions were predicted to ease this year, but the war in Ukraine and new forced lockdowns in China have instead created fresh supply challenges. The solar industry, like many others, is facing unprecedented inventory obstacles. At Kinect Solar, we’re doing everything in our power to help our customers weather this storm successfully. This month, we’ve secured a substantial addition to our solar module inventory to help keep your installation targets on track.
A Bleak Entrance into Q2 2022
As we enter the second quarter of 2022, solar equipment costs are rising again, potentially the second year in a row to see an overall price increase (solar prices increased by as much as 18 percent in 2021). In an industry where year-over-year price increases are basically unheard of, current events are forcing solar installers and developers to make tough business choices.
We know many of our customers have had to delay or cancel solar projects due to lack of available inventory, or with the hope that prices will stabilize in the future. Others are being forced to pass price increases along to their customers.
Unfortunately this is all happening at a time when we need solar more than ever – consequences of global warming are at the forefront of current events and traditional fossil fuel supply chains are also facing unprecedented strain. You might call it the perfect storm.
Installers and developers of all sizes are struggling to find equipment at prices that keep their projects in the black. Small- to mid-size businesses are being hit especially hard and are increasingly looking to the secondary solar market to find equipment. We are doing what we can to help our customers keep their solar projects moving forward.
Lauren Carson
, CEO, Kinect Solar
Kinect Solar is Here to Help
Though we don’t have a magic wand to wave away the supply chain constraints, we do have a team of solar experts exclusively focused on helping you navigate the solar coaster, even when it may look like it’s going off the rails. Our number one goal is always making your business run more smoothly and we’re more committed to that now than ever.
Coming into the second quarter of 2022, Kinect Solar has acquired 40 MW of new Qcells to help you keep your projects moving forward. We have Q.PEAK DUO L-G7.3 395W and Q.PEAK DUO L-G7.3 400W modules in stock and ready to ship, available while supplies last.
Qcells is a Tier 1 solar manufacturer that makes modules for residential, commercial, and industrial solar projects. They are ranked as one of the top 10 global solar manufacturers.
Future of the Solar Supply Chain
When it comes to the future of solar, maybe the only two things we know for sure are:
- We don’t know exactly how the future will unfold for the solar supply chain.
- Kinect Solar remains focused on helping you navigate the uncertain market.
There is advocacy in the U.S. for more domestic solar production, which would reduce our dependence on the international supply chain. However, the current level of demand for solar requires reliance on international manufacturing as well, at least for the foreseeable future.
Long-term, solar prices are likely to return to their established pattern of regularly decreasing as technology advances and more manufacturing capability is added, both domestically and internationally. Market conditions, however, remain subject to unpredictable global current events.
The price and availability of solar modules and other equipment required for solar projects will continue to be affected by things like global transport costs (currently driven up by the war in Ukraine), factory shutdowns in China (which is a heavy producer of solar modules), constrained port traffic in China, and other factors beyond our control.
Kinect Solar experts are dedicated to following solar industry developments, particularly supply chain fluctuations, and working hard to provide the best options to keep your solar business on target. Our unique position as a solar-only supply chain service provider in the U.S. allows us to optimize your transport options and costs in any market, which is especially valuable with today’s shipping challenges. See how our logistics and other solar-optimized services can help your business navigate the current market conditions:
- Domestic shipping
- Warehouse storage or temporary on-site storage
- Port services and drayage
- Liquidating excess or legacy equipment
- Selling on consignment
- Solar procurement services
It’s easy to feel discouraged by the news and its impact on your business but at Kinect Solar, we know there’s always a way forward. Regardless of what’s happening in the world, we believe solar is still the best answer for a sustainable, energy independent future. We hope to see the rate of new solar installations continue to increase and we’re here to help you make it happen.