The U.S. solar industry has achieved a monumental milestone in Q1 2024, adding a record-breaking 11 gigawatts (GW) of new solar module manufacturing capacity. This marks the largest quarterly growth in American history, according to the U.S. Solar Market Insight Q2 2024 report by the Solar Energy Industries Association (SEIA) and Wood Mackenzie. Total U.S. solar module manufacturing capacity now surpasses 26 GW annually.
Solar Installations Surge
In addition to manufacturing gains, the industry installed an impressive 11.8 GW of new solar capacity in Q1, bringing the nation’s total capacity to 200 GW. This follows a strong 2023, with over 40 GW of new capacity added. Wood Mackenzie now projects that the U.S. solar industry will install another 40 GW in 2024.
Federal Investments Fuel Growth
SEIA president and CEO Abigail Ross Hopper emphasized the role of federal investments in clean energy, stating, “This quarter proves that new federal investments in clean energy are revitalizing American manufacturing and strengthening our nation’s energy economy. The solar and storage industry is uplifting communities across the country.”
Utility-Scale Solar Drives Record Deployment
The utility-scale market led the charge in Q1, adding nearly 10 GW of new capacity. Florida and Texas experienced significant growth and topped all states in new solar installations. New Mexico and Ohio also had strong quarters, installing 686 and 546 megawatts (MW), respectively.
Challenges and Future Outlook
Despite the record growth, the solar industry faces challenges such as labor shortages, equipment constraints, and trade policy uncertainty, as noted by Michelle Davis, head of global solar at Wood Mackenzie.
The Residential Market Slows
The residential solar segment, particularly in California, experienced its worst quarter in two years due to policy changes. However, the commercial and community solar markets remained steady year-over-year.
Continued Growth Expected
Total U.S. solar capacity is projected to double over the next five years, reaching 438 GW by 2029. This impressive growth trajectory highlights the continued strength and potential of the U.S. solar industry.