U.S. solar installations in the third quarter fell 30% from a year ago after tariffs on overseas-made panels. The U.S. solar industry is blaming tariffs for delays and cancellations of major solar energy projects. An estimated $8 billion worth of utility-scale projects were canceled or put on hold for the five-year period that ends in 2022, according to a new report from the Solar Energy Industry Association and Wood Mackenzie Power & Renewables. How is the market responding? Domestically, California’s new mandate could help the industry. California became the first state to require solar panels on all new homes. A state building standards commission approved the new rule earlier this month but it takes effect until 2020. Analysts forecast any weakness in the utility-scale market will be offset by larger volume projects.

For international companies like, Etrion, this seems to be the case. Independent solar power producer, Etrion SA, could end 2019 with better-than-expected earnings and revenues. Thanks to the development of large-scale photovoltaic (PV) parks in Japan and a drop in operating costs the company has increased earnings and enhanced performance, CEO Marco A Northland, explained. Sliding solar panel prices are also spurring demand from utilities.

Despite the tariffs, solar installations held up reasonably well, said Jeff Berman, a director at S&P Global Platts Analytics. Berman expects the impact to diminish as the tariffs weaken over the next few years. Wood Mackenzie raised its forecasts for 2019 through 2023 as utilities procure projects that will qualify for a federal tax credit. Meanwhile. developers will continue to delay buying modules until 2020 or later because the tariff drops by 5 percent each year.