U.S. Solar Manufacturing Surges to 4X and 31 GW Capacity as Clean Energy Policies Drive Record Growth

Source: Sean Wolfe, Paul Gerke from Renewable Energy World.

A new report highlights that the U.S. solar module manufacturing capacity has surpassed 31 GW, a nearly fourfold increase since the Inflation Reduction Act (IRA) was enacted in 2022. The U.S. Solar Market Insight Q3 2024 report, from the Solar Energy Industries Association (SEIA) and Wood Mackenzie, shows that federal clean energy policies are fueling significant growth, with 9.4 GW of new capacity added in Q2 2024. Since the IRA, the industry has contributed 75 GW of solar capacity, powering 1.5 million homes.

Texas leads the solar market, installing 5.5 GW in the first half of 2024. However, future growth is challenged by interconnection issues, equipment shortages, labor constraints, and potential tariffs. Despite these hurdles, annual solar installations are projected to grow 4% over the next few years, with U.S. capacity expected to double to 440 GW by 2029.

While domestic solar production is strengthening, especially with new facilities in development, manufacturing costs in the U.S. remain high compared to China. This has led to reliance on tariffs and government incentives to maintain competitiveness in the global market.

Telkes’ Take: The rapid expansion of solar manufacturing capacity in the U.S., driven by the Inflation Reduction Act, marks a critical turning point for the nation's clean energy future. A nearly four-fold increase in capacity to 31 GW within just two years showcases the impact of robust federal policy on the renewable energy industry. While challenges like interconnection bottlenecks and equipment shortages persist, the industry's forward momentum is undeniable. States like Texas are leading the charge, but the solar growth across the U.S. highlights the broader, national benefits of a strengthened domestic solar supply chain.