In the second quarter of 2024, the U.S. solar market added 9.4GW of new capacity, up 29% from the same period in 2023. In the third quarter, 8.6GW of new capacity was installed, up 21% from 2023. During that time, solar accounted for 64 percent of new generating capacity added to the U.S. grid. Solar projects currently generate enough electricity to power 37 million homes.
The states with the highest solar capacity are Texas and Florida, at 7.9GW and 3.1GW respectively, and while commercial solar capacity increases significantly in 2024, solar association SEIA expects residential solar capacity to shrink by 26% by the end of the year.
The United States is also investing in strengthening its domestic solar module manufacturing industry, with funding from the IRA and the Bipartisan Infrastructure Act (BIL). In the second quarter, domestic component manufacturing capacity increased by more than 10 GW to 31.3GW, and in the third quarter it increased by another 9GW to nearly 40GW. This marks a significant increase from mid-2022, when domestic manufacturing capacity was just 7GW. The first U.S. battery manufacturing plant also opened in the third quarter of this year. The sharp rise in capacity demonstrates the impact of the IRA and BIL on the industry, which have provided more funding for green energy projects, as well as tax breaks and other financial incentives.
The United States is funding domestic manufacturing to support industrial localization of solar companies. According to SEIA and WoodMackenzie's U.S. Solar Market Insight Q4 2024 report, five new or expanded manufacturing plants were built in Alabama, Florida, Ohio and Texas. The report also noted that at full capacity, the United States could now produce enough solar panels to meet nearly all of its domestic demand.
The American Council on Clean Energy (ACP) expects utility-scale solar installations in the United States to hit a new high of more than 32GW by the end of this year. "The US solar market is expected to grow at a compound annual growth rate of 6.6 per cent between 2025 and 2030, with annual new installations reaching 37GW in the last year of the century," the ACP said. The group pointed to lower polysilicon prices as a driver of the positive short-term outlook, but warned that the imposition of tariffs could increase costs.
This year, U.S. trade officials also set preliminary tariffs on solar cells from four major Southeast Asian exporters after U.S. manufacturers complained of unfairly flooding the market with cheap products. The U.S. Department of Commerce has set preliminary anti-dumping duties of 53.3 percent to 271.28 percent for solar cells imported from Vietnam, 125.37 percent for Cambodia, and 77.85 percent to 154.68 percent for Thailand. Preliminary anti-dumping duty rates of 21.31% to 81.24% were imposed on Malaysia. China currently dominates the global solar supply and has large operations in all four countries. A final decision on anti-dumping duties is expected in April
2025.
Post time: Jan-06-2025