US solar industry manufacturing capacity surges by record 9.3 GW in Q3 2024

The twilight days of the current US administration have seen a few records set in the solar sector. According to a report by the Solar Energy Industries Association (SEIA) and Wood Mackenzie, the country added a record-breaking 9.3 GW of solar module production capacity in the third quarter of 2024.

This could not come at a more appropriate time, as the US achieved its third-best quarter ever in solar installations, with 8.6 GW worth of new projects added. This was a significant increase of 21 percent compared to the same period in 2023.

Both figures were notable as the third quarter was the first time since 2019 that silicon cells were produced in the US, enabling the return of local PV cell manufacturing.

Breaking the figures down, the utility-scale segment took the lion’s share with 6.6 GW of projects commissioned, with the surge driven by rising industrial demand for electricity.

Meanwhile, the commercial and community solar segments shined too, posting a whopping 44 percent growth in the third quarter and 12 percent year-on-year.

Texans led the charge in PV installations, with 2.4 GW added in the Lone Star State despite leading the US oil industry. The state accounted for 26 percent of new solar capacity in 2024, followed by Florida, where about 30,000 households have hopped on the solar train so far this year.

<o>Nationally, 1.4 million homes have taken advantage of federal incentives to install solar modules and cut their electricity bills and carbon footprints since January.

The report projects over 40 GW of new solar installation for 2025, with an annual addition of over 43 GW from 2026 to the end of the decade, when more than 71 million American homes will be powered by solar energy.

Speaking of the next five years for the US solar energy sector, Michelle Davis, Wood Mackenzie’s head of solar, said:

Our current outlook for the next five years has the US solar industry growing 2 percent per year on average, reaching a cumulative total of nearly 450 GW by the end of 2029. Demand for solar remains robust, and annual installation forecasts would be higher if not for limitations the industry faces, including those related to interconnection, labor availability, supply constraints, and policy.

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