The U.S. solar industry installed 50 gigawatts of new capacity last year, the largest single year of new capacity added to the grid by any energy technology in over two decades, according to the Solar Energy Industries Association (SEIA).
The SEIA’s Solar Market Insight 2024 Year in Review report, produced in association with Wood Mackenzie, found that solar and storage accounted for 84% of all new electric generating capacity added to the U.S. grid during 2024.
Domestic solar production also reported a significant increase last year, with solar module production tripling, and U.S. factories now capable of producing enough solar panels to meet nearly all domestic demand.
Rising electricity demand
“Solar and storage can be built faster and more affordably than any other technology, ensuring the United States has the power needed to compete in the global economy and meet rising electricity demand,” commented SEIA president and CEO Abigail Ross Hopper. “America’s solar and storage industry set historic deployment and manufacturing records in 2024, creating jobs and driving economic growth.
“It’s critical that lawmakers continue to support an ‘all of the above’ energy strategy that fosters the growth of American energy sources like solar and storage.”
Total solar capacity in the U.S. is expected to reach 739 GW by 2035, however the report highlights a number of challenges, such as changes to federal tax credits, supply chain availability, and policy updates, which could create uncertainty for investors and lead to a slowdown in development.
A worst-case scenario forecast, which would see a 130-gigawatt decline in solar installations, would result in nearly $250 billion in lost investment, SEIA noted, with states such as Texas, Indiana, and Florida seeing the largest declines.
Solar installation records
Texas introduced 11.6 GW of new installations last year, replicating its record-setting 2023, while some 21 states set new annual installation records.
“Last year’s record-level of installations was aided by several solar policies and credits within the Inflation Reduction Act that helped drive interest in the solar market,” added Sylvia Levya Martinez, principal analyst, North America Utility-Scale Solar for Wood Mackenzie.
“We still have many challenges ahead, including unprecedented load growth on the power grid. If many of these policies were eliminated or significantly altered, it would be very detrimental to the industry’s continued growth.” Read more here.
