How will the new “green” policy affect electricity, automobiles, public transportation, and construction, if Democratic presidential candidate Joe Biden takes office? According to the analysis of Rethink Energy Research, the installed capacity of solar energy in the US may amplify from the particular outcome, and arrive at above 450GW in the accumulated installed capacity by 2030.
Biden had proposed the Green New Deal prior to the election that is worth US$2 trillion, which offers projects including energy tax exemption and the policy of a zero carbon industry, and hopes to elevate the ratio of clean energy in the fields of traffic, electricity, and construction. Now the president-elect has even promised to achieve carbon-free power generation by 2035 through replacing coal-fired power generation with renewable energy sources such as solar and wind energy, followed by an economy of zero emission by the year of 2050.
This specific measure may introduce job opportunities. The unemployment figure in the US had surged to over 20 million during the outbreak of the COVID-19 pandemic, and has since been reduced to 12 million, though there will be an increasing number of construction amidst the post-pandemic era due to the need of economic revitalization, improvement in infrastructures, and a systematic exploration in new technology.
According to its analysis on the future solar energy of the US, Rethink Energy Research believes that the implementation of a new investment tax credit (ITC) and the compromises made for solar energy and energy storage will serve as the critical factors in creating new job opportunities in the fields of renewable energy and electric vehicles, and returning to the employment level from the past. Rethink Energy Research commented that this vision will be achieved if major bills are approved.
Rethink Energy Research predicts that the ratio of the US in the solar module market will increase from 11% to 19%, which will invigorate the solar industry regardless of Biden cancelling or adjusting the Section 201. The cancellation of duty will no doubt allow cheaper solar cells to enter the US and stimulate the installed capacity, though the maintenance of duty also offers momentum for solar suppliers in policy.
The report points out that the installed capacity of solar energy in the US will start to ascend rapidly by 2030, and is expected to arrive at 66GW in new installed capacity after 10 years, which brings the country one step closer to the target of 500GW accumulated solar capacity. Although the Democratic Party did not receive the majority seats of the senate, which may impede policy implementation, the accumulated installed capacity will still escalate from the initially anticipated 235GW to more than 450GW.
The report also pointed out that future US presidential elections, the recovery speed in China’s economy, and the COVID-19 pandemic will completely alter the global solar industry. As pointed out by Rethink Energy Research, the 14th five-year plan of China plans to achieve zero emission by 2060, and will be deploying additional solar devices in the future, where the installed capacity will increase from the existing 38.5GW to 80GW after 10 years.
(Cover photo source: Flickr/Michael Mees CC BY 2.0)