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What are the biggest challenges faced by companies in the solar energy industry?

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Well, there are several challenges that companies in the solar energy industry are currently facing. One of the biggest challenges is the high cost of installation and maintenance. According to a study by the National Renewable Energy Laboratory, this cost accounts for more than half of the total cost of solar energy systems. This is a big issue, as many potential consumers are discouraged by the high upfront costs, despite the long-term savings.

Additionally, there are issues with the variability of solar energy production. As solar power is dependent on weather conditions, it can be unreliable, resulting in fluctuations in energy generation. This can be challenging for companies trying to maintain a steady supply of energy. However, advancements are being made in energy storage technologies to help mitigate this issue.

Another challenge for companies in the solar industry is the uncertainty surrounding government policies and regulations. Changes in policies can have a significant impact on the industry and can make it difficult to plan for the future. For example, when the United States announced steel and aluminum tariffs, prices for solar panels and racking increased, causing a significant disruption in the industry.

Finally, there is the issue of competition. While solar energy is becoming more popular, there is still competition from traditional sources of energy like coal and oil. With traditional energy becoming cheaper thanks to advancements in technology, it can be difficult for solar energy companies to compete.

Overall, while there are certainly challenges to be overcome, the solar energy industry is still experiencing significant growth. In fact, according to the Solar Energy Industries Association, solar energy installations grew by over 13% in 2019. As technology advances and policies become more favorable, it is likely that the industry will continue to grow and thrive.