The U.S. solar boom: An energy revolution in the making

The US solar industry is growing by leaps and bounds, with manufacturing capacity reaching 31 GW. Federal policies are driving this momentum, but challenges remain. Find out how these factors are shaping the future of solar energy in the United States.

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The U.S. solar industry is undergoing a significant transformation, with solar panel manufacturing capacity now exceeding 31 gigawatts (GW).
This increase, nearly quadrupling since the passage of the Inflation Reduction Act of 2022, is testament to the impact of federal policies on renewable energy development.
The Q3 2024 Solar Market Report, published by the Solar Industries Association (SEIA) and Wood Mackenzie, highlights the continued growth momentum of solar manufacturing and deployment.
Over the past two years, the solar industry has added 75 GW of new capacity to the grid, representing more than 36% of all solar capacity built in U.S. history.
At the same time, nearly 1.5 million U.S. homes have installed solar systems since the law went into effect.
This rapid expansion is largely attributed to federal incentives that encourage innovation and investment in the sector.

Impact of federal policies on the solar industry

Abigail Ross Hopper, President and CEO of SEIA, points out that “the solar and storage industry is turning federal policy into action by rapidly creating jobs and driving economic growth in every state, especially in key states like Arizona, Nevada and Georgia.”
This growth momentum is also visible in the numbers, with 9.4 GW of new electrical generation capacity installed as of the second quarter of 2024.
Texas stands out as the leading solar market, having installed 5.5 GW of capacity in the first half of 2024.
States to watch in the November elections, such as Texas, Florida, Nevada, Ohio and Arizona, are among the top ten solar states in 2024.
This concentration of solar activity in strategic states underlines the importance of local and federal policies in developing the sector.

Challenges and growth prospects

Despite these advances, the solar industry faces significant challenges that could hinder its future growth.
Michelle Davis, Global Head of Solar at Wood Mackenzie, says, “The solar industry had an excellent second quarter, driven primarily by growth in the large-scale segment. However, future growth is hampered by wider challenges in the energy sector, such as interconnection delays, electrical equipment shortages and labor availability constraints.”
In addition, the uncertainty associated with proposed new tariffs and the presidential elections adds a layer of complexity to strategic planning for companies in the sector.
The residential market, meanwhile, contracted in Q2 2024, due to policy changes in California and high interest rates nationwide.
This segment added 1.1 GW of new capacity, its lowest level in almost three years.
However, optimistic forecasts for 2025 and projected annual records from 2026 to 2029 point to a recovery.

Long-term growth forecasts

Annual solar installations are expected to grow by an average of 4% over the next few years, despite the challenges mentioned.
By 2029, total U.S. solar capacity is expected to double to 440 GW.
This projection underlines not only the resilience of the industry, but also the importance of policies to support decarbonization and the energy transition.
The rapid evolution of solar panel manufacturing capacity and the increase in the installation of solar systems in American homes illustrate a turning point in the way solar energy is perceived and adopted.
Industry players have to navigate a complex landscape, but long-term growth prospects remain encouraging, underpinned by supportive policies and growing demand for sustainable energy solutions.

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Nextracker will supply steel frames for solar modules to T1 Energy in a multi-year deal worth over $75mn, aiming to strengthen the local solar supply chain and reduce dependence on imported aluminium.
Geronimo Power has started construction on the Bee Hollow solar park in St. Clair County, a 150 MW project expected to generate $54mn in direct economic impact for the region.
EDF has inaugurated a 1.2 MWc solar power plant and an intelligent electrical grid in Maripasoula, French Guiana, strengthening the energy autonomy of this remote community previously reliant on fuel imports.
EDP has commissioned a solar power plant in Salerno integrating livestock farming, with a capacity of 10 MWc and an annual output of 17 GWh, marking the launch of a hybrid model to be replicated in France and Germany.
Aura Power has finalised financing for its fourth UK solar plant in twelve months, backed by Rabobank, bringing its under-construction capacity to 242 MWp across the country.
The Tützpatz solar project, developed by Vattenfall and powered by GCL System Integration, combines energy production and agricultural use across 93 hectares without public funding.
Koshidaka Group signed a 10-year power purchase agreement with Farmland and Eneres to supply its Tokyo-area facilities with electricity from a 1.6MWAC solar plant located in Annaka.
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Ascent Solar Technologies has delivered samples of its flexible photovoltaic technology to two companies for testing in extreme environments, at sea and in space.
Geronimo Power has started construction of the Bee Hollow solar project, valued at $54mn, in St. Clair County, delivering jobs, tax revenue and a partnership with the IMEA municipal agency.
The British government has approved Tillbridge Solar Farm, a 500-MW solar power plant with 2,310 MWh of energy storage, developed by Tribus Clean Energy and Recurrent Energy.
wpd solar France has launched construction of a 140.6MWc photovoltaic park in Marcy, in the Nièvre department, integrating agricultural co-activity across 632 hectares in partnership with five local farms.
Independent energy producer CVE has inaugurated a 12 MWc solar farm on municipal land in Volx, generating 19 GWh annually and an estimated €5mn in economic returns over 30 years.
GreenYellow strengthens its presence in the French overseas territories with the acquisition of 18 rooftop photovoltaic installations in Réunion, totalling 3.1 MWc in capacity, as part of a strategy to consolidate its decentralised energy assets.
The rapid rise of agri-voltaic projects in France raises concerns over agricultural impact, land speculation and the economic viability of a still-emerging model.
Norwegian developer Empower New Energy expands in North Africa with a strategic partnership involving ten industrial solar sites for self-consumption in Tunisia.
Chinese manufacturer JA Solar has started initial deliveries of its 650W n-type DeepBlue 5.0 module from its automated production site in Yangzhou.
Melvan is issuing local bonds to co-finance two photovoltaic projects in Avignon and Sault, aiming to supplement a total budget of EUR5.5mn ($5.82mn).
The 50 MW Kong solar power plant marks a new step in Côte d’Ivoire’s national grid expansion, with CFA37bn ($60.5mn) in funding and commissioning set for early 2027.

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