The year 2024 witnessed a groundbreaking milestone in the US energy sector as 50 gigawatts (GW) of new solar capacity were added to the grid. This marked the largest single year of new capacity added by any energy technology in over two decades, providing enough power to sustain 8.5 million households. The Solar Energy Industries Association (SEIA) and Wood Mackenzie jointly released the US Solar Market Insight 2024 Year in Review report, highlighting how solar and storage accounted for 84% of all new electric generating capacity added to the grid in the same year.
One of the significant economic highlights of 2024 was the surging US solar manufacturing sector. Domestic solar module production tripled, and US factories are now capable of meeting nearly all the demand for solar panels in the country. Solar cell manufacturing also resumed, strengthening the US energy supply chain. SEIA president and CEO Abigail Ross Hopper emphasized the importance of supporting an ‘all of the above’ energy strategy to foster the growth of American energy sources like solar and storage.
The report forecasts that the total US solar capacity is expected to reach 739 GW by 2035, but potential policy changes could impact the solar market. Sudden alterations to federal tax credits, supply chain availability, and permitting policies could create uncertainty for investors, increase costs for developers and manufacturers, and slow down solar deployment. The low-case scenario predicts a 130 GW decline in solar deployment over the next decade, representing almost $250 billion in lost investment.
States like Texas, Indiana, and Florida, which have been leading in solar capacity additions, could experience the largest declines in deployment under the low-case scenario. Texas alone could miss out on over $50 billion of solar investment in the next decade. The utility-scale segment saw historic gains in 2024, with a record 41.4 GW of installed capacity. The community and commercial solar markets also set annual records, while the residential solar market experienced a slowdown due to state-level policy changes and elevated interest rates.
Despite the challenges ahead, the solar industry remains optimistic about its growth potential. The report highlights the need for continued policy support to ensure a sustainable trajectory for solar deployment and manufacturing in the US. With the right strategies in place, the solar industry can continue to thrive, create jobs, drive economic growth, and contribute significantly to the country’s energy transition.
