US Solar Panel Manufacturing Capacity Increased 71% in Q1 2024
WASHINGTON — A record-setting 11 GW of new solar module manufacturing capacity came online in the United States during the first quarter of 2024, according to a solar market analysis published by the Solar Energy Industries Association and Wood Mackenzie.
Thanks to this milestone — which the association calls “the largest quarter of solar manufacturing growth in American history — total U.S. solar module manufacturing capacity now exceeds 26 GW annually.
In addition, the analysis says, the industry has now installed 1.8 GW of new solar capacity, bringing the total capacity across the country to 200 GW.
“The U.S. solar industry continues to show strength in terms of deployments,” said Michelle Davis, head of global solar at Wood Mackenzie and lead author of the report, in a written statement.
“At the same time, the solar industry faces a number of challenges to its continued growth including availability of labor, high voltage equipment constraints, and continued trade policy uncertainty,” Davis said.
The report also contains new data from 2023, showing that the United States added over 40 GW of new solar capacity last year. Wood Mackenzie now projects that the U.S. solar industry will install another 40 GW in 2024.
“This quarter proves that new federal investments in clean energy are revitalizing American manufacturing and strengthening our nation’s energy economy,” said SEIA president and CEO Abigail Ross Hopper, in the same announcement.
“Whether it’s a billion-dollar investment in a nearby solar project or a new manufacturing plant employing hundreds of local workers, the solar and storage industry is uplifting communities in every state across this country,” Hopper said.
According to the new research, “massive” growth in the utility-scale market is what’s driving record solar deployment figures as the segment added nearly 10 GW of new capacity in the first quarter.
Florida and Texas saw strong utility-scale growth and led all states for new solar capacity in the first quarter.
Other markets like New Mexico and Ohio also had strong quarters, installing 686 MW and 546 MW, respectively, the analysis found.
The residential solar segment is feeling the full weight of policy changes in California and experienced its worst quarter in two years. The commercial and community solar markets remained steady year-over-year.
On a bright note, the report said total U.S. solar capacity is expected to double over the next five years, growing to 438 GW by 2029.
Dan can be reached at [email protected] and @DanMcCue
