The solar manufacturing sector in the U.S. has experienced significant growth, especially in the fourth quarter of 2024, due to federal policies aimed at boosting domestic production.
According to the U.S. Solar Energy Industries Association (SEIA), 9.3 GW of solar module manufacturing capacity was added in the third quarter alone. This surge is a step towards meeting domestic solar demand through local production, which is a departure from the previous trend of offshoring. The report highlights the establishment and expansion of solar module factories in Alabama, Florida, Ohio, and Texas. These states have seen investments in solar technology, despite political opposition to supportive policies. The revival of solar cell manufacturing in the U.S. is significant as it marks the first time since 2019 that silicon cells have been produced domestically. This demonstrates the impact of favorable policies on the clean technology sector.
The resurgence of solar manufacturing is not only increasing capacity but also creating job opportunities. SEIA President and CEO Abigail Ross Hopper emphasized that federal solar policies and private investments are benefiting American communities and enhancing energy security. This is important as the U.S. aims to regain market share from foreign competitors, particularly China. Additionally, the U.S. solar power capacity has seen a significant increase, with 8.6 GW added in the third quarter, the highest quarterly addition ever recorded. The commercial and community solar markets have also experienced growth, but the utility-scale solar market has been the primary driver.
The residential solar sector has been thriving, with 1.4 million American homes installing solar panels in the past two years, largely due to U.S. solar incentives. In the third quarter, nearly 30,000 Floridians opted for rooftop solar systems, reflecting the state's commitment to renewable energy. Texas has emerged as a leader in solar energy, contributing a significant portion of the new solar power capacity in 2024.
Looking ahead, the solar industry is expected to continue growing. SEIA forecasts that new solar generation capacity will exceed 40 GW in 2024 and anticipates annual capacity additions of at least 43 GW for the rest of the decade. This would result in nearly 450 GW of solar power capacity by the end of 2029, providing electricity to over 71 million homes annually. The optimistic projections reflect the supportive policies and technological advancements driving down costs and increasing adoption rates in the renewable energy sector. The ongoing developments in solar manufacturing and capacity expansion highlight the transformative impact of federal policies and private investments on the future of energy in the United States.