The U.S. has introduced an unprecedented 9.3 GW of fresh solar module manufacturing capability in the third quarter, which includes five new or enhanced factories situated in Alabama, Florida, Ohio, and Texas.
The overall solar module manufacturing capacity in the U.S. is now close to 40 GW.
The most recent U.S. Solar Market Insight Q4 2024 report by the Solar Energy Industries Association (SEIA) and Wood Mackenzie indicates that, at full capacity, U.S. solar module factories possess the ability to generate sufficient equipment to satisfy nearly all solar demand across the United States.
Importantly, solar cell production resumed in the third quarter, marking the first time since 2019 that silicon cells were produced in the U.S.
In Q3, the U.S. solar sector installed 8.6 GW of new electricity generation capacity, reflecting a 21% year-over-year growth and marking the largest third quarter in history for the industry.
The utility-scale sector spearheaded the industry, with 6.6 GW of new projects becoming operational. Utilities and enterprises are propelling this expansion as they secure substantial amounts of solar to cater to the increasing electricity demand. Additionally, the commercial and community solar markets experienced significant advancements in the third quarter, increasing by 44% and 12% year-over-year, respectively.
Texas maintains its position as the frontrunner in solar deployment, adding 2.4 GW of capacity in Q3. The Lone Star State constitutes 26% of all new capacity that has become operational thus far in 2024. Florida ranks second in terms of solar capacity installations in 2024, with nearly 30,000 households adopting solar this year.
Over the past two years, 1.4 million American households have utilized federal incentives to install solar systems and reduce their energy expenses.
“Our present forecast for the next five years predicts the U.S. solar industry to grow an average of 2 percent annually, aiming for a cumulative total of nearly 450 GW by the conclusion of 2029,” states Michelle Davis, head of solar research at Wood Mackenzie and lead author of the report.
“The demand for solar remains strong, and annual installation projections would be higher were it not for challenges that the industry confronts, including those regarding interconnection, labor availability, supply limitations, and policy issues.”
Total solar deployment in 2024 is once again anticipated to surpass 40 GW, followed by annual installation amounts of at least 43 GW for the rest of the decade.
By 2029, total U.S. solar capacity will be sufficient to supply power to more than 71 million homes.
