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Solar prices fall for first time in three years

Solar panels line a hill.

Photo: Gerard Julien/AFP via Getty Images

The price of solar energy eased 1% in Q2 compared to the prior quarter, reversing three straight years of sequential gains in North American energy markets.

What's happening: The quarter-to-quarter dip suggests that disruptions in the sector may finally be fading, per the latest market report from LevelTen Energy. The price pullback is prevalent in most markets, with the exception of Texas.

Yes, but: Year-over-year prices are up 25%.

Catch up fast: LevenTen's market report tracks offer prices on power purchase contracts across seven independent service operators in the U.S. and Canada.

State of play: Trade disputes with China, an anti-dumping investigation, and a forced labor crackdown throttled the flow of solar panels to the U.S.

  • Labor shortages and grid connection delays added to the challenges.

The latest: More solar panels have started crossing the border as companies have figured out how to comply with U.S. forced labor rules.

  • President Biden last year also granted a temporary reprieve on the anti-dumping investigation.

Separately: Prices on wind energy jumped 12% as the shortage of wind power has worsened.

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