Solar

US breaks record for solar module manufacturing in Q1 2024, eclipses 200 GW capacity

US breaks record for solar module manufacturing in Q1 2024, eclipses 200 GW capacity
(Courtesy: American Public Power Association)

If the United States is going to fall short of its 2030 renewable energy goals, it won’t be without a fight.

The U.S. added 11 GW of new solar module manufacturing capacity in Q1 2024, the largest quarter of solar manufacturing growth in American history. According to the U.S. Solar Market Insight Q2 2024 report released by the Solar Energy Industries Association (SEIA) and Wood Mackenzie, U.S. solar module manufacturing capacity now exceeds 26 GW annually. Solar accounted for 75% of all new electricity-generating capacity added to the grid.

Per the report, the industry also installed 11.8 GW of new solar capacity, bringing total capacity to 200 GW in the United States. It was the industry’s second-largest quarter of installations, second only to the previous quarter, Q4 2023. New data from 2023 shows that the United States added more than 40 GW of new solar capacity last year. Wood Mackenzie now projects that the U.S. solar industry will install another 40 GW in 2024.

“This quarter proves that new federal investments in clean energy are revitalizing American manufacturing and strengthening our nation’s energy economy,” said SEIA president and CEO Abigail Ross Hopper. “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.”

A chart showing U.S. solar module manufacturing capacity by quarter since 2021 (courtesy: Wood Mackenzie and SEIA)

Massive growth in the utility-scale market is driving record solar deployment figures as the segment added nearly 10 GW of new capacity in Q1, per SEIA and Wood Mackenzie. Florida and Texas led all states for new solar capacity in Q1, adding 2.7 GW and 2.6 GW, respectively. New Mexico (686 MW) and Ohio (546 MW) also had strong quarters.

“The U.S. solar industry continues to show strength in terms of deployments,” added Michelle Davis, head of global solar at Wood Mackenzie and lead author of the report. “At the same time, the solar industry faces a number of challenges to its continued growth including availability of labor, high voltage equipment constraints, and continued trade policy uncertainty.”

The residential solar segment is feeling the weight of policy changes in California and has experienced its worst quarter in two years. The segment had its lowest quarter since Q1 2022 at 1.3 GW, reflecting a 25% decline year-over-year and 18% quarter-over-quarter. The commercial (434 MW) and community solar (279 MW) markets remained steady year-over-year.

Total U.S. solar capacity is expected to double over the next five years, growing to 438 GW by 2029.

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