The U.S. solar industry is poised for modest growth this year, predicts SolarEdge Technologies (NASDAQ:SEDG) CFO Ronen Faier. Faier made the announcement on Thursday, citing declining electricity prices and the increasing support from the Inflation Reduction Act.

Macroeconomic uncertainties in Q3 and Q4 impacted demand for solar products in the U.S. However, Faier is optimistic that demand will pick up in 2024. He anticipates lower interest rates to spur growth, as reported by Reuters from his speech at a Goldman Sachs conference in Miami.

Incentives from the IRA in leading solar markets like California are also expected to contribute to the improved economics and prices of solar products and components, according to Faier.

Additionally, the CFO foresees a continued growth in battery installations in the U.S. and European markets. Faier attributes this to manufacturers clearing out large inventories of battery panels and other equipment.