U.S. Solar Capacity and Manufacturing Overview 2025
The U.S. solar manufacturing industry is experiencing significant growth, with the cumulative capacity reaching 8.6 GW in 2025, according to the Solar Energy Manufacturing for America (SEMA) Coalition. This includes an impressive 6.2 GW of crystalline silicon solar modules, 1.9 GW of thin-film modules, and 500 MW of crystalline silicon solar cells. Additionally, a remarkable 32.3 GW of new capacity has been announced this year, with 26.5 GW currently under construction and another 5.8 GW in the planning stages.
Despite this progress, the U.S. Department of Energy (DOE) has highlighted a pressing challenge: the country is producing only 25% of the solar modules needed to meet its 2030 decarbonization goals. According to the DOE’s “U.S. Energy and Employment Report 2025,” the annual solar module production capacity stands at 17.5 GW, whereas the nation requires at least 69 GW of modules annually to achieve its ambitious clean energy targets.
Current U.S. Solar Capacity Production Levels and Challenges
In 2023, the U.S. produced only 5.2 GW of solar modules, which is substantially below the required 69 GW per year to meet the 2030 decarbonization goals. This shortfall highlights the gap between current production levels and the DOE’s targets.
John Smirnow, vice president of market strategy at the Solar Energy Industries Association, emphasized the necessity for continued growth in domestic solar manufacturing. While the Inflation Reduction Act (IRA) has successfully spurred new manufacturing capacity, Smirnow stressed the need for further investment to achieve the DOE’s decarbonization targets.
The DOE’s report also underscores the critical role of federal support in enhancing solar manufacturing capabilities. The Inflation Reduction Act, which offers incentives for domestic manufacturing, has been instrumental in driving new investments in the sector. However, the report warns that without ongoing support and investment, the U.S. may struggle to achieve its decarbonization objectives.
Future Prospects for U.S. Solar Capacity and Manufacturing
Despite the challenges, there are promising signs for the future of U.S. solar manufacturing. The SEMA Coalition anticipates the announcement of an additional 6 GW of manufacturing capacity this year. This would bring the total capacity to approximately 40 GW, still short of the 69 GW needed but indicative of significant progress.
SEMA Coalition Director Mike Carr expressed optimism about the industry’s growth. He noted that the increase in capacity marks a positive step toward meeting decarbonization goals. However, Carr also acknowledged that substantial work remains to ensure the U.S. can produce sufficient solar modules to meet future demand.
The DOE’s report highlights the necessity for a coordinated approach to solar manufacturing, which includes investments in research and development and policies that bolster the domestic solar supply chain. A comprehensive strategy is essential to ensure that the U.S. meets its decarbonization targets while also fostering the growth of the solar industry.
In conclusion, the U.S. solar manufacturing industry has made notable progress in 2025 with new capacity announcements and increased production. However, to meet its decarbonization goals, continued investment and support are imperative to ensure the U.S. can produce enough solar modules to meet future demand.