The US solar manufacturing industry has recently achieved a significant milestone, with domestic solar module production capacity surpassing 50 gigawatts (GW). This capacity is enough to meet the entire solar demand of the country if all factories were to operate at full capacity. This achievement marks a shift in the US solar industry, which has traditionally relied on imports for key components.
According to the Solar Energy Industries Association’s (SEIA) Supply Chain Dashboard, companies have announced plans for 56 GW of new solar cell production, 24 GW of wafer production, and 13 GW of ingots in the US. Additionally, domestic solar tracker manufacturing capacity has exceeded 80 GW.
SEIA president and CEO Abigail Ross Hopper expressed her thoughts on this milestone, stating that reaching 50 GW of domestic solar manufacturing capacity is a testament to the impact of smart, business-friendly public policies. The US now ranks as the third-largest module producer globally, thanks to these policy actions. Hopper emphasized the crucial role that energy policies play in strengthening the domestic manufacturing industry, which American workers and their families rely on.
SEIA initially set a goal in 2020 to achieve 50 GW of US solar module production capacity by 2030, equivalent to the power output of 27 Hoover Dams. This goal encompasses the entire solar supply chain, including modules, cells, ingots, wafers, polysilicon, trackers, and inverters. At the time of setting this goal, the US only had 7 GW of domestic module production and lacked manufacturing for critical upstream components like ingots and wafers.
However, significant progress has been made since then. Two new US solar cell factories, located in Georgia and South Carolina, have commenced operations in recent months, addressing some of the gaps in the industry. SEIA’s strategy has focused on developing domestic module production first to create demand for upstream components. Policy incentives such as the advanced manufacturing production tax credit have incentivized companies to invest in all aspects of the solar supply chain.
Another milestone was achieved when SEIA advocated for solar ingot and wafer production to qualify for a 25% investment tax credit under the CHIPS and Science Act of 2022. This move has further expanded the US solar supply chain. Since the enactment of key federal energy policies, US solar module manufacturing has grown five-fold.
In conclusion, the US solar manufacturing industry has made significant strides in recent years, reaching a production capacity of 50 GW for solar modules. This achievement underscores the importance of supportive energy policies in boosting domestic manufacturing and ensuring a sustainable future for the industry.
