In 2023, the U.S. solar industry witnessed unprecedented growth, adding a record-breaking 32.4 gigawatts (GW) of new electric generating capacity. This marks a remarkable 37% increase from the previous record set in 2021 and a notable 51% increase from 2022.
Solar power accounted for a significant portion, 53%, of all new electric generating capacity added to the grid last year, marking the first time in 80 years that a renewable energy source has surpassed the 50% mark in annual capacity additions.
SEIA president and CEO Abigail Ross Hopper emphasized the potential for even further growth, highlighting the impact of federal clean energy policies such as the Inflation Reduction Act. The Act has substantially boosted solar deployment, leading to an 89% growth in America’s solar module manufacturing base in 2023.
Projections suggest that total U.S. solar capacity could soar to 673 GW by 2034, capable of powering over 100 million homes. However, the industry faces uncertainties, including policy outcomes tied to the upcoming presidential election.
Wood Mackenzie’s Michelle Davis highlighted the various factors influencing solar market forecasts over the next decade, including interest rates, tax credit financing, trade policy, and supply chain availability. Potential scenarios range from a 17% increase to a 24% decrease in outlook by 2034, depending on policy and economic outcomes.
Despite challenges, solar module manufacturing capacity doubled in 2023. However, U.S. manufacturers may face hurdles due to record-low module prices and economic conditions. Currently, the U.S. lacks ingot, wafer, or cell manufacturing facilities, presenting growth opportunities for the industry.
Across all segments, every solar market segment experienced year-over-year growth, bringing the total installed solar capacity in the U.S. to 177 GW. The utility-scale sector led the charge, adding 22.5 GW of new capacity, while residential installations saw nearly 800,000 Americans embrace solar energy.
Energy storage adoption is also on the rise, with solar + storage setups accounting for a significant portion of installations in both residential and non-residential sectors. Texas emerged as the leader in new solar installations, followed by California, although the latter’s residential solar market may face challenges in 2024 due to policy changes.
In a noteworthy development, Colorado, Ohio, and Wisconsin made notable appearances in the top 10 solar states list for 2023, reflecting the growing adoption of solar energy across the nation. More than half of U.S. states now boast at least 1 GW of total installed solar capacity
