US solar industry on track for record 32 GW installations in 2024

The US renewable energy is projected to install more than 32 GW of solar projects in 2024, according to figures released by the American Clean Power Association and S&P Global Commodity Insights.

The first edition of the biannual Solar Market Monitor report reveals that the US will witness a 6.6 percent compound annual goal rate (CAGR) from 2025 to the end of the decade when 37 GW of solar projects will be commissioned.

The industry will experience a slight setback in 2025 when solar installation will experience a lull and dip by 16 percent compared to 2024. According to the report, the boom of 2024 is primarily due to the haste to beat the tariff moratorium deadline on importing solar panels from some Southeast Asian countries. Outgoing President Biden's administration set up the 2-year tax relief in 2022 to allow solar energy developers to source cheaper PV panels from countries such as Cambodia, Malaysia, Thailand, and Vietnam. Part of the terms of the moratorium is that the solar projects must be completed before 2025.

Then, the US solar industry is expected to bounce back in 2026 and maintain steady growth until 2030. The recovery will be partly boosted by a decline in PV module prices, which can see projects cost 16 percent less to execute. This will lead to a drop in the levelized cost of energy (LCOE) from $46/MWh to $38/MWh by 2030.

There have been concerns about the potential impact of the incoming Donald Trump administration gutting parts of Biden's Inflation Reduction Act (IRA). However, many industry experts remain optimistic that the act's critical components will be preserved.

Commenting on the report, John Hensley, American Clean Power Association's senior vice president of policy & market analysis, said:

This inaugural report highlights how solar has solidified itself as a clean and cost-competitive energy resource for the US. Moving forward, this resource will help the industry navigate the dynamic US solar marketplace.