In the global production and usage of wind and solar energy, the United States rests comfortably at the top, second only to China. And its share should only be increasing following recent, significant federal investment into America’s growing renewable energy infrastructure.
However, a recent survey of large-scale wind and solar developers conducted by the Energy Markets and Policy department at Lawrence Berkeley National Laboratory reveals that deployment is being impeded by a number of factors including “technical, economic, and social factors” leading to project delays and cancellations.
It should be noted that the responses, taken from 123 industry professionals representing approximately half (62) of the companies responsible for wind and solar development from 2016–2023, may not be indicative of the entire industry.
The January 2024 press release about the survey notes that “Approximately one-third of wind and solar siting applications in the last five years were canceled,” leading to millions of dollars lost in sunk cost, or expenses that could not be recovered. This included $2 million in sunk cost for solar and $7.5 million for wind, with half experiencing delays of 6 months. These delays are estimated to cost approximately $200,000 per megawatt for both wind and solar.
According to the survey, the top three leading causes of project cancellations and delays for wind and solar projects are local ordinances or zoning, grid interconnection and community opposition. Solar projects are also delayed by supply chain issues.
In addition, opposition to wind and solar “is becoming more prevalent and is more expensive to address than it was five years ago,” according to the press release. Developers are expecting this opposition to further increase over the next five years, affecting the earning potential of their companies, along with the technicians, electricians and electrical contractors needed to install and maintain the energy producing systems. In response, survey participants believe that community engagement that allows the public to provide input affords them the best chance of addressing community concerns and thereby decrease opposition.
