WASHINGTON, D.C. — The United States is making significant strides towards its 2030 renewable energy goals, with a record-breaking quarter for solar manufacturing and installations. In Q1 2024, the U.S. added 11 GW of new solar module manufacturing capacity, marking the largest quarterly growth in American solar manufacturing history, according to the U.S. Solar Market Insight Q2 2024 report by the Solar Energy Industries Association (SEIA) and Wood Mackenzie.
The report highlights that U.S. solar module manufacturing capacity now exceeds 26 GW annually. Solar energy accounted for 75% of all new electricity-generating capacity added to the grid during this period. Additionally, the industry installed 11.8 GW of new solar capacity, bringing the total capacity to 200 GW in the United States. This was the second-largest quarter for installations, only surpassed by Q4 2023. Data from 2023 indicates that the U.S. added over 40 GW of new solar capacity last year, with projections suggesting another 40 GW will be installed in 2024.
"This quarter proves that new federal investments in clean energy are revitalizing American manufacturing and strengthening our nation’s energy economy," said SEIA President and CEO Abigail Ross Hopper. "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."
A chart provided by Wood Mackenzie and SEIA shows the growth trajectory of U.S. solar module manufacturing capacity since 2021. The utility-scale market has been a major driver of this growth, adding nearly 10 GW of new capacity in Q1 alone. Florida and Texas led all states in new solar capacity additions, contributing 2.7 GW and 2.6 GW, respectively. New Mexico and Ohio also posted strong performances with 686 MW and 546 MW of new capacity, respectively.
"The U.S. solar industry continues to show strength in terms of deployments," noted Michelle Davis, head of global solar at Wood Mackenzie and lead author of the report. "At the same time, the solar industry faces a number of challenges to its continued growth including availability of labor, high voltage equipment constraints, and continued trade policy uncertainty."
However, the residential solar segment faced difficulties due to policy changes in California, experiencing its lowest quarter since Q1 2022 with 1.3 GW of new capacity, reflecting a 25% year-over-year decline and an 18% quarter-over-quarter decline. The commercial (434 MW) and community solar (279 MW) markets remained steady year-over-year.
The report underscores the impact of federal investments and policy support in driving the U.S. towards its renewable energy targets, despite the challenges faced by certain segments of the industry.
Source: Renewable Energy World