The U.S. solar industry saw significant growth in the third quarter of 2024, adding 9.3 gigawatts (GW) of new solar module manufacturing capacity, a record for the country. This expansion brings the U.S. closer to meeting its solar energy demand domestically.
The U.S. Solar Market Insight Q4 2024 report, released by the Solar Energy Industries Association (SEIA), indicates that the country’s solar module manufacturing capacity now totals nearly 40 GW. The growth was driven by the establishment and expansion of five new solar factories located in Alabama, Florida, Ohio, and Texas.
Additionally, the quarter marked the return of solar cell manufacturing to the U.S. for the first time since 2019, representing a notable development in the country’s solar industry.
SEIA President and CEO Abigail Ross Hopper highlighted the impact of federal solar policies and private investments, which are contributing to the country’s energy security and job creation. She emphasized that these efforts are helping the U.S. capture market share from international competitors and ensuring that the economic benefits of solar energy remain within local communities.
Record Installations and Market Growth
The U.S. solar industry also saw record-breaking installations in Q3 2024, with 8.6 GW of new electricity generation capacity added, marking a 21% year-over-year increase. The utility-scale sector led the growth, contributing 6.6 GW of new capacity, while the commercial and community solar markets experienced year-over-year increases of 44% and 12%, respectively.
Texas remained the leader in solar deployment, adding 2.4 GW of new capacity in Q3, accounting for 26% of all new installations in 2024. Florida followed, with nearly 30,000 households installing solar systems this year.
Over the past two years, 1.4 million American households have utilized federal incentives to install solar systems, leading to reduced energy costs for many families.
Industry Outlook
Looking ahead, the report forecasts the U.S. solar industry will grow at an average rate of 2% per year over the next five years, with a cumulative total of nearly 450 GW expected by the end of 2029.
Despite strong demand for solar energy, the industry faces challenges such as interconnection delays, labor shortages, supply constraints, and policy issues that could affect growth. Nevertheless, the report anticipates that total solar deployment in 2024 will exceed 40 GW, with annual installations expected to surpass 43 GW for the remainder of the decade. By 2029, the U.S. solar industry is projected to power more than 71 million homes, playing a key role in the nation’s renewable energy strategy.
Get comprehensive supply chain report news updates at The Supply Chain Report. For international trade tools, see ADAMftd.com.
#USSolarGrowth #RenewableEnergyBoom #SolarManufacturing #CleanEnergyExpansion #SustainableFuture #EnergyIndependence #GreenTech
