Florida and Texas Lead in Solar Installations as California Faces Policy Challenges
The United States achieved a historic milestone in solar energy production during the first quarter of 2024, with a record-breaking 11 gigawatts (GW) of new solar module manufacturing capacity coming online. This remarkable growth, the largest in American history, has propelled the country’s total solar module manufacturing capacity to exceed 26 GW annually.
The latest U.S. Solar Market Insight Q2 2024 report, jointly released by the Solar Energy Industries Association (SEIA) and Wood Mackenzie, highlights this unprecedented expansion. Additionally, the report reveals that the industry installed 11.8 GW of new solar capacity in Q1 2024, bringing the total installed capacity to 200 GW across the nation. The data also indicates that the U.S. added over 40 GW of new solar capacity in 2023, with projections suggesting another 40 GW will be installed in 2024.
“This quarter proves that new federal investments in clean energy are revitalizing American manufacturing and strengthening our nation’s energy economy,” said Abigail Ross Hopper, SEIA president and CEO. “Whether it’s a billion-dollar investment in a nearby solar project or a new manufacturing plant employing hundreds of local workers, the solar and storage industry is uplifting communities in every state across this country.”
The utility-scale market has been a significant driver of this growth, with nearly 10 GW of new capacity added in Q1 2024. Florida and Texas emerged as leaders, showing strong utility-scale growth, while states like New Mexico and Ohio also had impressive performances, installing 686 megawatts (MW) and 546 MW, respectively.
“The U.S. solar industry continues to show strength in terms of deployments,” said Michelle Davis, head of global solar at Wood Mackenzie and lead author of the report. “At the same time, the solar industry faces several challenges to its continued growth, including the availability of labor, high voltage equipment constraints, and ongoing trade policy uncertainty.”
However, not all sectors fared equally well. The residential solar segment in California experienced its worst quarter in two years, largely due to recent policy changes. In contrast, the commercial and community solar markets remained stable year-over-year.
Looking ahead, the total U.S. solar capacity is expected to double over the next five years, reaching an impressive 438 GW by 2029. This rapid expansion underscores the critical role of federal investments and the increasing adoption of solar energy across the United States, despite the challenges faced by the industry.
