The United States achieved a milestone in solar energy development during the third quarter of 2024, adding a record-breaking 9.3 gigawatts (GW) of new solar module manufacturing capacity. This significant expansion brings the country closer to meeting nearly all its solar energy demand domestically.
According to the U.S. Solar Market Insight Q4 2024 report released today by the Solar Energy Industries Association (SEIA) the U.S. solar module manufacturing capacity has reached nearly 40 GW. This surge was fueled by five new or expanded factories in Alabama, Florida, Ohio, and Texas.
The quarter also saw the resumption of solar cell manufacturing in the U.S. for the first time since 2019, marking a pivotal moment for the nation’s solar industry.
“Federal solar policies and increased private investments are strengthening our nation’s energy security and creating thousands of new job opportunities for American workers,” said Abigail Ross Hopper, SEIA president and CEO. “The United States is stepping up to take market share from foreign competitors and ensuring that the economic benefits of solar energy remain within our communities.”
Record Installations and Market Growth
The U.S. solar industry installed 8.6 GW of new electricity generation capacity in Q3, a 21% year-over-year increase and the largest Q3 on record. The utility-scale sector led the growth with 6.6 GW of new projects coming online. Commercial and community solar markets also reported strong gains, growing 44% and 12% year-over-year, respectively.
Texas remains the nation’s leader in solar deployment, adding 2.4 GW of capacity in Q3 and accounting for 26% of all new capacity installed in 2024. Florida ranked second, with nearly 30,000 households installing solar this year alone.
In the last two years, 1.4 million American households have leveraged federal incentives to install solar systems, significantly reducing their energy costs.
Industry Outlook
“Our current outlook for the next five years has the U.S. solar industry growing 2% per year on average, reaching a cumulative total of nearly 450 GW by the end of 2029,” said Michelle Davis, head of solar research at Wood Mackenzie and lead author of the report.
While demand for solar energy remains robust, the report highlights challenges such as interconnection delays, labor shortages, supply constraints, and policy issues that may hinder even higher growth rates.
Despite these limitations, the total solar deployment in 2024 is expected to exceed 40 GW, with annual installations surpassing 43 GW for the remainder of the decade. By 2029, U.S. solar energy capacity is projected to power over 71 million homes, cementing its role as a cornerstone of the nation’s renewable energy strategy.
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