Sliding electricity demand and declining commercial and industrial activity could prompt distribution companies to block or delay payments to solar power producers.
The digital platform automates the entire distributed solar project design and net metering approval process, which is crucial in today’s era of social distancing and remote business operations driven by COVID-19 globally.
U.S.-owned analyst Wood Mackenzie expects solar demand to decline but predicts the market will recover, with the prospects for the energy transition remaining intact.
Developers are also expected to drag their heels over project completion during the first half of the year as the safeguarding duty applied to imported Chinese and Malaysian solar products is due to expire at the end of July.
Contracted revenue, minimal volume risk and moderate-to-strong counterparties mitigate cash flow concerns in solar assets.
Lobby group the National Solar Energy Federation of India says around 4 GW of solar plant capacity is likely to be affected by component shortages after the outbreak of the virus in China.
Delay in sourcing of PV modules from China can cause project cost and time overruns, inviting penalties for missing the commissioning date.
WoodMac analysts say the amount of new battery manufacturing capacity added in the nation this year could fall by as much as 10% because of the outbreak. With Tesla’s Shanghai gigafactory affected by the extended new-year-holiday shutdown, the analyst warned of potential supply shortages for Australia and the U.S. and U.K.
The coronavirus outbreak in China could raise solar module prices in the near term as manufacturers have already begun experiencing wafer and solar glass shortages. Production rates are also being affected by an extended new year holiday introduced by the authorities as a measure to deal with the virus, and the requirement workers from infected areas quarantine themselves for two weeks.
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