During the first quarter of 2024, the United States witnessed a groundbreaking addition of 11 gigawatts (GW) of new solar panel manufacturing capacity, marking the most significant quarter of solar manufacturing growth in American history.
US Solar Industry Sets Records
The latest quarterly report from the Solar Energy Industries Association (SEIA) and Wood Mackenzie reveals that the US commissioned a record-breaking 11 GW of new solar panel manufacturing capacity in the first quarter of the year, marking the largest quarterly growth in American history. As a result, the country's total annual solar module production capacity now exceeds 26 GW.
The substantial growth in manufacturing corresponds with a notable rise in solar installations, contributing to the addition of 11.8 GW of new solar capacity. This surge has propelled the total US solar panel capacity to a significant milestone of 200 GW.
Over 40 GW of Solar Capacity Added Last Year
Based on new data from 2023, the US added over 40 GW of solar capacity last year. Wood Mackenzie now projects that the U.S. solar industry will install another 40 GW in 2024. The report indicates that solar accounted for 75% of all new electricity-generating capacity added to the US grid in the first quarter.
The significant expansion in the utility-scale market is driving record solar deployment figures, with the segment adding nearly 10 GW of new capacity in Q1. Florida and Texas experienced robust growth in utility-scale installations, leading all states in new solar capacity during the quarter. Additionally, markets such as New Mexico and Ohio demonstrated strong performance installing 686 MW and 546 MW respectively.
SEIA President and CEO, Abigail Ross Hopper commented, “This quarter proves that new federal investments in clean energy are revitalizing American manufacturing and strengthening our nation’s energy economy. Whether it’s a billion-dollar investment in a nearby solar project or a new manufacturing plant employing hundreds of local workers, the solar and storage industry is uplifting communities in every state across this country.”
Industry Projects Growth Amidst Challenges
The report predicts that the US solar industry will maintain an annual installation rate of approximately 40 GW DC over the next five years. However, growth is expected to plateau in 2024 and 2025 primarily due to a slowdown in the utility-scale segment. Other challenges impacting the market include labor shortages, constraints in high-voltage equipment and ongoing uncertainty in trade policies. Despite these challenges, the five-year projection forecasts US solar panel capacity to reach 438 GW by 2029.