The cost of building solar power plants is increasing due to constraints in the supply chain

just as President Joe Biden calls for more solar

power on the electric grid.

It’s the first time in seven years that solar prices increased quarter-over-quarter and year-over-year in every market, according to Wood Mackenzie, a

consulting firm. Prices for solar components

for utility-scale projects increased 6% in the second quarter of 2021 compared to the same time last year, according to a report from Wood Mackenzie and the Solar Energy Industries Association. The most significant price increases have come from higher prices for steel and aluminum and elevated freight costs, the report said.

“This is a critical moment for our climate future but price increases, supply chain disruptions and a series of trade risks are threatening our ability to decarbonize the electric grid,” said Abigail Ross Hopper, president and CEO of SEIA.

Wood Mackenzie forecasts that the U.S. will average about 29 gigawatts of new solar capacity annually through 2026. To achieve Biden’s clean energy targets, the solar industry needs to install more than 80 gigawatts of solar annually from 2022 through 2035, the report said.