US residential solar prices increase as supply chain constraints bite

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
Panasonic, REC and Silfab Solar were the panel brands with the highest market share in EnergySage’s report. Image: REC Solar.

The quoted price of residential solar in the US inched up in the second half of last year, most likely due to the effects of supply chain constraints and shortages, new research from marketplace provider EnergySage has revealed.

Median quoted solar prices increased over a six month period for the first time since EnergySage began tracking prices in 2014. They rose by 0.4% to US$2.68/W between the first and second half of 2021, according to the company’s latest Solar Marketplace Intel Report, which provides insight on pricing, equipment and consumer preference in the US residential solar and energy storage sectors.

For the third half-year in a row, Arizona saw the lowest median quoted solar costs at US$2.25, while in H2 Indiana overtook Colorado for the highest median cost at US$3.27/W.

More than half of solar installers that responded to an EnergySage survey reported that supply chain constraints have either slightly or significantly harmed their company’s year-over-year change in sales, while about two-thirds of installers indicated that availability of solar panels and residential batteries has either slightly or significantly decreased.

The findings tally with research published last week by the Solar Energy Industries Association (SEIA), which found that while a record 4.2GWdc of residential solar was installed in 2021, elevated component pricing and supply chain issues worsened throughout the year, with many industry players experiencing tight module and battery availability in Q4 and heading into 2022.

According to EnergySage, three panel brands – Panasonic, REC and LG Solar – dominated residential solar marketplace share in H1 2021, but each of their shares declined in H2, when Silfab Solar overtook LG Solar to tie with REC in second place.

In the second half of last year, six of the ten most frequently quoted solar panels on EnergySage were rated 360 – 370W, while panels above 400W accounted for 16% of all quotes, more than any other six-month period.

On the inverter front, Enphase maintained its growth on EnergySage’s marketplace with most of the market share, while SolarEdge lost some marketplace share, dropping from 32% in H1 2021 to 29% in H2 2021.

In terms of energy storage, financial savings overtook emergency backup power and resilience as the primary driver of storage interest in the second half of 2021, with 70% of all EnergySage solar shoppers requesting storage quotes when they register. For the year as a whole, 13% of residential solar systems installed through EnergySage included energy storage, up from 9% in 2020.

Nationwide, the installed cost of residential energy storage increased 5% between H1 and H2 2022 to US$1,289/kWh. The three most quoted battery brands – Enphase, LG Energy Solution and Tesla – accounted for 86% of all quotes submitted in the second half of the year.

Publication of the report comes a month after French electrical equipment group Schneider acquired a controlling stake in EnergySage, with the marketplace now looking to scale its operations globally.

14 June 2022
Join us in Napa to unlock the key to reliable PV module supply to the U.S. market in 2022 & 2023. We'll also be gathering the main players in the US solar market for some wine tasting!
15 June 2022
Consumers are turning to residential renewables in significant numbers, driven by a desire to be environmentally conscious and a wave of high power prices. But turning green requires easy-to-use and, above all, safe technologies that meet expectations. Huawei is committed to building efficient, safe, reliable and grid-supporting smart PV plants that also provide smart services to consumers, and its Residential Solution has been tailored to meet consumer demand. This webinar will demonstrate the full suite of technologies offered within the Huawei Residential Solution, including a smart energy controller, smart AC charger, and AI-powered energy storage solution, and detail how it can place power back in the consumer’s hands.

Read Next

May 20, 2022
US solar tracker manufacturer Nextracker has expanded its output with the addition of a new line in Arizona.
PV Tech Premium
May 19, 2022
PV Tech speaks to Qcells CEO Justin Lee about the manufacturer's recent solar manufacturing capacity expansion, its use of TOPCon as a 'stepping stone' to future cell technologies and its new clean energy strategy.
May 19, 2022
More than 80 US House representatives have joined a chorus of lawmakers opposing the solar tariffs investigation and pressed US President Joe Biden to expedite it.
May 18, 2022
US solar EPC company iSun doubled its Q1 revenue year-on-year but has lowered its 2022 guidance as a result of module procurement challenges within its utility-scale unit.
PV Tech Premium
May 18, 2022
Identifying reliable module supply has become a huge challenge in the PV industry over the past couple of years. Moving forward, the industry needs to create a more globally-diversified manufacturing footprint, thereby avoiding any unexpected trade-related barriers that could be enforced. Understanding which module suppliers are going to prevail in this landscape will become of key importance over the next 12-18 months, Finlay Colville explains
May 18, 2022
The European Union (EU) has significantly ramped up and brought forward its solar deployment targets as part of its updated REPowerEU strategy, redesigned to combat the bloc’s reliance on fossil fuels, and in particular Russian gas.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
June 14, 2022
Napa, USA
Solar Media Events
October 4, 2022
New York, USA