U.S. Solar Manufacturing Reaches 31 GW Amid Rapid Growth Since Inflation Reduction Act

The solar module manufacturing capacity in the United States has now surpassed 31 gigawatts (GW), representing a nearly fourfold increase since the passage of the Inflation Reduction Act (IRA) in 2022. This data is based on the U.S. Solar Market Insight Q3 2024 report from the Solar Energy Industries Association (SEIA) and Wood Mackenzie. The report highlights how federal clean energy policies continue to drive both manufacturing and deployment in the solar sector, as 9.4 GW of new electric generation capacity was installed in the second quarter of 2024.

Since the implementation of the IRA, 75 GW of solar capacity has been added to the U.S. grid, accounting for over 36% of all solar energy ever built in the country. During this period, nearly 1.5 million American homes have adopted solar energy.

SEIA President Abigail Ross Hopper emphasized the positive impact of federal policies on job creation and economic growth, especially in key states like Arizona, Nevada, and Georgia. She also noted that domestic solar module production is on track to meet nearly all U.S. demand in the coming years.

Texas continues to lead the nation, having installed 5.5 GW of solar capacity in the first half of 2024. Other states, including Florida, Nevada, Ohio, and Arizona, also rank among the top solar markets this year, particularly as they approach elections in November.

Michelle Davis, head of global solar at Wood Mackenzie and lead author of the report, noted that while the solar industry had a strong second quarter, future growth is facing challenges. Issues such as interconnection delays, equipment shortages, labor constraints, and uncertainty surrounding proposed tariffs and the upcoming presidential election are creating hurdles for the sector.

The residential solar market experienced a contraction in the second quarter of 2024, driven by policy shifts in California and rising interest rates across the country. The sector added 1.1 GW of new capacity, its lowest quarterly increase in almost three years. However, the residential market is expected to rebound in 2025 and is projected to reach new records annually between 2026 and 2029.

Despite current obstacles, the report forecasts steady growth, with solar installations expected to increase by 4% annually over the next few years. By 2029, total U.S. solar capacity is projected to reach 440 GW, effectively doubling the current capacity.