The United States is experiencing spectacular growth in solar installations, reaching an all-time high in the first quarter of 2024. According to a report published by Wood Mackenzie and the SEIA (Solar Energy Industries Association), 75% of added power generation capacity comes from solar energy, with 11.8 GW newly installed.
Expansion of the Solar Supply Chain
This growth is attributable to a number of factors, including the expansion of the global supply chain and a significant increase in solar module imports into the United States. The growing availability of solar panels andfederal and state policies aimed at increasing the share of renewable energies in the energy mix have largely contributed to this increase. The report also points out that solar module imports reached 49 GW between June 2023 and March 2024, marking a significant increase on previous periods.
Effects of Federal Policies
The two-year moratorium imposed by the Biden administration on solar panels suspected of being produced with forced labor in China has also facilitated this expansion. This has removed certain bottlenecks in the supply chain, reducing the cost of solar panels. At the same time, domestic solar panel manufacturing capacity jumped to 26.6 GW in the first quarter of the year, compared with 15.6 GW in the previous quarter.
Geographical distribution of installations
Florida, Texas, California and Nevada are the states with the most solar panels installed, with a predominance of industrial-scale solar projects. However, domestic solar additions were down 25% year-on-year and 18% quarter-on-quarter, mainly due to rising interest rates and a slowdown in the California solar rooftop market. The solar commercial sector remained relatively stable from one quarter to the next.
Future prospects
The report anticipates that the US will install a similar amount of solar capacity to 2023, which had already set a record with nearly 40 GW of additions. This continued growth reflects the country’s commitment to meeting its climate targets by increasing the share of renewable energies in the national energy mix.
The US solar industry is booming, driven by favorable policies and a strengthened supply chain. This positions the United States as a world leader in the adoption of renewable energies, making a significant contribution to the global energy transition.
