Breaking Records: U.S. Solar Industry Growth

The U.S. solar industry witnessed an unprecedented surge in 2023, adding a remarkable 32.4 gigawatts (GW) of new electric generating capacity. This marks a substantial 37% increase from the previous record set in 2021 and a staggering 51% increase from 2022.

Solar Dominance in Electric Generating Capacity

According to the U.S. Solar Market Insight 2023 Year in Review published by the Solar Energy Industries Association (SEIA) and Wood Mackenzie, solar energy accounted for 53% of all new electric generating capacity added to the grid in 2023. This milestone marks the first time in 80 years that a renewable energy source has contributed over 50% of annual capacity additions.

Predicted Growth and Impact

SEIA’s president and CEO, Abigail Ross Hopper, emphasized that with continued federal support for clean energy policies, total solar deployment could quadruple over the next decade. The Inflation Reduction Act has accelerated solar deployment, leading to an 89% growth in America’s solar module manufacturing base in 2023.

Total U.S. solar capacity is projected to reach 673 GW by 2034, sufficient to power over 100 million homes.

Forecast Scenarios and Industry Uncertainties

The report includes forecast scenarios that analyze how policy and economic factors could influence the solar market. The U.S. solar industry faces uncertainties, especially regarding policy outcomes related to the upcoming presidential election. Factors such as interest rates, tax credit financing, trade policy, and supply chain availability will significantly impact the industry’s growth trajectory over the next decade.

There is a 200 GW disparity between the high- and low-case forecasts for 2034.

Manufacturing and Market Segments Growth

Solar module manufacturing capacity doubled from 8.5 GW to 16.1 GW in 2023. Despite this growth, record-low module prices and economic challenges may hinder U.S. manufacturers from fulfilling announced facilities. In 2023, prices for monofacial and bifacial solar modules declined by 26% and 31% respectively, presenting an opportunity for expansion.

Every solar market segment experienced growth in 2023, leading to a total installed solar capacity of 177 GW in the United States.

State Rankings and Solar Market Trends

Texas emerged as the leader for new solar installations with 6.5 GW, surpassing California for the second time in three years. California’s residential solar market is expected to face challenges in 2024 due to changes in net metering policies, resulting in a projected 36% decline across all segments in the state.

States like Colorado, Ohio, and Wisconsin made significant strides in solar installations in 2023. Over half of the U.S. states now have 1 GW of total installed solar capacity.

For more information, visit seia.org/smi.

Solar Energy Industries Association (SEIA®)

The Solar Energy Industries Association® (SEIA) is at the forefront of the transition to a clean energy economy, aiming for solar to contribute 30% of U.S. electricity generation by 2030. SEIA collaborates with 1,000 member companies and strategic partners to advocate for policies that spur job creation and foster fair market competition to facilitate the growth of affordable solar power.

Established in 1974, SEIA serves as the national trade association for the solar and solar + storage industries, envisioning a comprehensive Solar+ Decade through research, education, and advocacy. Connect with SEIA online at www.seia.org and follow @SEIA on Twitter, LinkedIn, and Instagram.