Solar May Have A Friend In The White House, But Escalating Prices And Supply Chain Shortages Are Hampering Solar’s Growth Short Term; Solar Integrated Roofing Corp. (OTC PINK: SIRC) Is Focused On Expanding Its Solar Footprint
Solar may have friends In the White House in Biden’s administration, but escalating prices and supply chain shortages are hampering solar’s growth short term. Price hikes, especially on solar module key component poly silicon, are key right now. But there’s more: supply chain interruptions on everything from transportation/trucking to price increases on steel, copper and aluminum are also playing an immediate role. Solar module prices have risen 18% since the start of 2021 with the price of polysilicon quadrupling over the past year, according to site Bloomberg Green. “ Yet, solar installers and manufacturers of solar modules say in about one year (season) all this will go away and supply will catch up to demand. Solar Integrated Roofing Corp. (OTC PINK: SIRC) is focused on expanding its solar footprint and creating acquisitive and organic growth in its renewable energy strategy.
stockmarketpress.com features specialized coverage of related stocks in the solar, roofing, EV charging stations and battery charging energy industry such as Solar Integrated Roofing Corp. (OTC PINK: SIRC), Sunrun, Inc. (NASDAQ: RUN), Blink Charging Co. (NASDAQ: BLNK), Tesla, Inc. (NASDAQ: TSLA), GM (NYSE: GM), SolarEdge Technologies, Inc. (NASDAQ: SEDG), First Solar, Inc. (NASDAQ: FSLR), SunPower (NASDAQ: SPWR), Gibraltar Industries, Inc. (NASDAQ: ROCK), Spartan Acquisition Corp. II (NYSE: SPRQ). and Canadian Solar Inc. (NASDAQ: CSIQ).
Solar May Have A Friend In The White House, But Escalating Prices And Supply Chain Shortages Are Hampering Solar’s Growth Short Term; Solar Integrated Roofing Corp. (OTC PINK: SIRC) Is Focused On Expanding Its Solar Footprint
Jenny Chase, Lead Solar Analyst with Bloomberg NEF, said, “The disruption to solar hasn’t been this bad in more than a decade. Developers and governments are going to have to stop expecting solar to get much cheaply quicker.” Poly silicon, a key solar module ingredient, is rising in price far beyond what installers are budgeting. Poly silicon is an ultra-refined form of silicon — in abundant supply. However, makers of the refined poly silicon are short term unable to keep up with demand for more solar panels.
They’ll catch up within a year, experts say, putting solar on a solid growth footing again. Yet, some solar manufacturers in the Asia-Pacific market — such as Vena Energy Pte. — see the price increases and shortages as a short-term situation. As a greater number of solar and poly silicon factories come on line in China and other countries, supply will catch up to demand, they say. Solar May Have A Friend In The White House, But Escalating Prices And Supply Chain Shortages Are Hampering Solar’s Growth Short Term; Solar Integrated Roofing Corp. (OTC PINK: SIRC) Is Focused On Expanding Its Solar Footprint.
Just as President Biden is accelerating his proposed $6 trillion green energy initiative for renewables such as solar, the roofing industry sees supply disruption as a challenge near term in obtaining raw materials — such as fasteners and even trucking support, according to the National Roofing Contractors Association (NRCA). It’s a time of golden opportunity when demand for roofing and solar work is at an apex as the Biden administration seeks new green energy initiatives.
Short Term Solar Material Shortages, Supply Chain Interruptions
The result for the short term is that large scale solar projects in the U.S. could get delayed or postponed. At the very least, the solar projects could cost far more than their original estimates. 2021 could wind up as the first year of negative solar growth in 17 years, due to material shortages, delivery shortfalls, supply chain interruptions and price hikes. For a complete analysis of the solar market, a Bloomberg Podcast on the solar price hike issue can be played in its entirety here.
Manufacturers and installers grew spoiled over the past decade when prices of solar modules fell by 90%. Prices for poly silicon have grown from $6.19 a kilogram less than one year ago to $25.88, according to site PVInsights. And they’re expected to keep rising at least through the end of 2022, according to Roth Capital Partners. Solar industry analyst Wood Mackenzie Ltd. believes that still unsigned price agreements could mean higher solar installation costs and booming electricity expenses. A shortage of semiconductor components to solar micro inverters will only aggravate the shortage issues. Solar May Have A Friend In The White House, But Escalating Prices And Supply Chain Shortages Are Hampering Solar’s Growth Short Term; Solar Integrated Roofing Corp. (OTC PINK: SIRC) Is Focused On Expanding Its Solar Footprint.
Some of the same material shortages are also affecting roofing. David Massey, CEO of SIRC, recently told Micro Cap stock investors about similar supply headwinds in roofing. “My only concern is material. With COVID, a lot of the plants have shut down, there is a material shortage and there are cost increases. We have the labor pretty well covered but if manufacturers in roofing can keep up with demand, then we can keep up and materials are my only concern.”
SIRC’s $100 Million 12-Month Volume Guidance
Positive on renewable energy — solar, rechargeable storage solar batteries, EV Charging Stations and new roofing — Solar Integrated Roofing Corp. (OTC PINK: SIRC) has set at least $100 million preliminary 12 month revenue guidance through May 31, 2022, reflecting its rapid growth both through acquisitions and organic increases. David Massey, CEO of SIRC, said the company could grow volume even further in this time period if SIRC continues to populate its acquisition pipeline. SIRC has been rolling up roofers and solar and battery installers creating a true platform company as well as shoring up its back office and sales efficiencies/capabilities to scale nationwide, he said.
“We are realizing both acquisitive and organic growth on all fronts while minimizing dilution. Looking ahead, we continue to populate our acquisition pipeline which could further grow this $100 million revenue guidance figure. I look forward to continued operational execution in the months ahead, working closely with our team to create sustainable value for our shareholders over the long-term.” Solar May Have A Friend In The White House, But Escalating Prices And Supply Chain Shortages Are Hampering Solar’s Growth Short Term; Solar Integrated Roofing Corp. (OTC PINK: SIRC) Is Focused On Expanding Its Solar Footprint.
Learn more about SIRC at https://www.solarintegratedroofing.com/corporate-governance/leadership/.
Source: Stock Market Press
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