US Solar Industry Adds 9.4 GW Capacity in Q2 2024

The US solar industry installed 9.4 GW of new capacity in Q2 2024, driven by federal policies. Texas led with 5.5 GW, while broader challenges like equipment shortages and policy uncertainties loom. Residential solar is set to rebound

September 11, 2024. By EI News Network

The US solar industry has seen substantial growth, with manufacturing capacity now exceeding 31 GW, a near four-fold increase since the Inflation Reduction Act (IRA) became law in 2022, according to the US Solar Market Insight Q3 2024 report released by the Solar Energy Industries Association (SEIA) and Wood Mackenzie.

The growth is attributed to federal clean energy policies that have significantly boosted manufacturing and deployment, said the report. In Q2 2024, the industry installed 9.4 GW of new electric generation capacity, marking a significant contribution to the national grid. Over the past two years, since the IRA’s enactment, the solar industry has added 75 GW of new capacity, accounting for over 36 percent of all solar capacity built in US history. Nearly 1.5 million American homes have installed solar since the IRA was passed, reflecting strong residential uptake.

SEIA President and CEO Abigail Ross Hopper emphasised the positive impact of these policies, stating, “The solar and storage industry is turning federal clean energy policies into action by rapidly creating jobs and powering economic growth in all 50 states, particularly in battleground states like Arizona, Nevada, and Georgia. We are now manufacturing historic amounts of solar energy in America, and soon, we will have enough domestic module production to supply nearly all US demand for years to come.”

As per the report, Texas continues to dominate as a leading solar market, installing 5.5 GW of capacity in the first half of 2024. However, the solar industry faces challenges such as interconnection backlogs, equipment shortages, and labor constraints, which may slow future growth. Despite these hurdles, the market is projected to expand, with total US solar capacity expected to double to 440 GW by 2029.

The residential solar sector, which added 1.1 GW in Q2 2024, experienced a slowdown due to policy changes in California and high interest rates but is expected to recover by 2025 and set records from 2026 to 2029.

Tags:

Inflation reduction act

IRA

Solar Energy Industries Association

SEIA

Federal clean energy policies

Residential solar sector in US

US Solar Market Insight Q3 2024