On Thursday (January 5), local time, Ronen Faier, chief financial officer of inverter giant SolarEdge, said that the Russia-Ukraine conflict will promote substantial growth in the European solar market, while the industry's growth is expected to slow down in 2023.

is an Israeli company that develops and sells solar inverters for photovoltaic arrays, energy generation monitoring software, battery energy storage products, and other related products and services.

Attending a conference in Miami on Thursday, he told investors that high prices and regulatory uncertainty will limit U.S. solar expansion, although the new Inflation Cut Act is expected to boost long-term growth such as solar.

In August last year, U.S. President Biden signed the Inflation Reduction Act (IRA), the largest climate bill in U.S. history, which will invest $369 billion in new energy and climate change projects.

"We believe that the IRA has largely stabilized the benefits of the ITC policy (solar tax credit) over the next few years and will not put a lot of pressure on anyone at a time when interest rates are relatively high. "

However, Faier pointed to the Russian-Ukrainian conflict that has led to a spike in fossil fuel prices, Europe's decision to accelerate its transition to renewable energy, and countries such as Germany to offer generous incentives for solar development.

Last May, the European Union unveiled a $317 billion plan to completely wean itself off Russia's fossil fuels within five years. The plan proposes that by 2030, 45% of the EU's energy will come from wind, solar and other renewable resources.

It is expected that some solar markets in Europe, especially German-speaking countries and the United Kingdom, may grow by more than 100% this year. In contrast, the US solar market is expected to grow by only about 15% this year. In addition, Japan and other Asian markets will also accelerate the expansion of solar energy construction and use.

The United States is suffering from a severe shortage of solar panels. There are very few domestic solar panel manufacturers in the country, and more than 80% of solar panels are imported. Due to the U.S. trade policy, a large number of solar panels cannot enter the country's market, and import obstruction has severely restricted the growth of U.S. solar installed capacity.

Source: Financial Associated Press