In the first quarter of 2024, the United States witnessed its most significant period of solar manufacturing expansion in history, elevating its total installed capacity to 200 gigawatts (GW).
A groundbreaking 11.8 gigawatts (GW) of new solar panel manufacturing capacity were brought online in the US during Q1 2024, constituting 75% of all new electricity-generating capacity added to the US grid during that period.
As per the US Solar Market Insight Q2 2024 report jointly released today by the Solar Energy Industries Association (SEIA) and Wood Mackenzie, the total US solar panel manufacturing capacity surged to 26.6 GW in Q1 2024, compared to 15.6 GW in Q4 2023. Once operational, this augmented capacity is poised to cater to approximately 70% of US demand.
The report also unveils fresh data indicating that the US incorporated over 40 GW of new solar capacity in 2023 – surpassing initial estimates. Wood Mackenzie now forecasts an additional 40 GW installation in 2024 by the US solar industry.
“This quarter underscores how new federal investments in clean energy are rejuvenating American manufacturing and fortifying our nation's energy economy,” remarked Abigail Ross Hopper, President, and CEO of SEIA. “Whether through a billion-dollar investment in a local solar project or the establishment of a new manufacturing facility employing hundreds of local residents, the solar and storage industry is empowering communities across every state in this country.”
The utility-scale solar sector witnessed record deployment figures, with nearly 10 GW of new capacity added in Q1. States like Florida (2.7 GW) and Texas (2.6 GW) showcased robust utility-scale growth, leading the pack in new solar capacity addition. Additionally, states such as New Mexico and Ohio also demonstrated significant quarters, installing 686 and 546 megawatts (MW), respectively.
“The US solar industry continues to demonstrate resilience in terms of deployments,” noted Michelle Davis, Head of Global Solar at Wood Mackenzie and principal author of the report. “Simultaneously, the solar industry grapples with several challenges to its sustained expansion, including labor availability, constraints in high-voltage equipment, and ongoing uncertainty in trade policies.”
While the US residential solar segment faced setbacks due to unfavorable policy decisions in California, experiencing its worst quarter in two years, the commercial and community solar markets maintained steady growth year-over-year.
Projections indicate a substantial surge in total US solar capacity over the next five years, with estimates suggesting a doubling to 438 GW by 2029.
