US Solar and Storage Manufacturing Sees Remarkable Growth, Says SEIA Report

The US solar and energy storage sectors have seen remarkable growth, fuelled by federal policies that have spurred USD 40.2 billion in manufacturing investments since 2022, according to the latest Solar Energy Industries Association's (SEIA) updated Solar and Storage Supply Chain Dashboard.

The dashboard provides the latest data and analysis on how federal clean energy policies are fuelling rapid, historic growth in American solar and storage manufacturing.

As per SEIA, the surge in investments is largely attributed to federal tax credits, such as Section 45X and Section 48C, which have played a pivotal role in enhancing energy security and advancing clean energy goals.

SEIA further reveals that these investments are not just on paper—USD 8.7 billion has already become operational, with USD 16.2 billion under construction and USD 15.2 billion still in development. These efforts are expected to create more than 44,000 manufacturing jobs, with projections showing the solar workforce will grow to 100,000 by 2033. Job creation spans various stages of production viz.11,850 jobs in operational facilities, 14,560 in construction, and 17,590 in development.

A key driver of this growth is the establishment of 73 new solar and storage manufacturing facilities, with another 48 under construction. These facilities are spread across 43 states and Puerto Rico, signaling strong support for domestic manufacturing. Notably, the US now has 51.7 GW of solar module manufacturing capacity, positioning the country to meet most of its solar demand by 2025.

The push for local manufacturing has received bipartisan backing, with 279 facilities in Republican-led congressional districts and 170 in Democrat-led districts. This reflects widespread political support for the clean energy sector. The US solar industry aims to reduce reliance on foreign imports, boosting the country’s global competitiveness.

The US solar module supply chain has experienced exceptional growth, expanding from 7 GW/year of module manufacturing capacity and 25 GW of polysilicon capacity to 51.7 GW, representing a more than 600 percent increase in module manufacturing. Polysilicon, ingot, and wafer facilities are expected to ramp up in the coming years, while additional cell manufacturing facilities are anticipated by 2025.

The federal tax credits have also fueled growth in the solar mounting systems sector, with 26 new racking facilities either opened or expanded. These facilities produce key components like rails, torque tubes, and trackers for solar installations across the US.

Additionally, the power electronics and grid technologies sector—comprising inverters and transformers—has seen significant expansion. Eighteen new facilities for hybrid inverters, microinverters, and string inverters, as well as other essential grid components, have been announced.

On the energy storage front, before the introduction of federal tax credits, US manufacturing in this area was limited. However, the battery energy storage system (BESS) market has seen notable progress. New facilities are under construction for battery materials, cells, and packs, with production capacity set to increase substantially. Midstream processing of anode and cathode materials will begin by 2025, strengthening the US position in energy storage manufacturing.

These investments are driving significant economic growth, especially in local communities. With over USD 40 billion in investments, the solar and storage manufacturing sector is expected to create 66,000 jobs by the end of the decade, more than doubling previous employment figures. Federal tax credits have had a far-reaching impact, supporting the growth of facilities at every stage of the supply chain.

With continued investments and job creation, the US is positioned to emerge as a global leader in renewable energy production, marking a pivotal milestone in the nation’s clean energy transition and reinforcing its commitment to fighting climate change.