For the first time since 2019, solar cell manufacturing has resumed in the United States, as domestic production of silicon solar cells kicked off in Q3 2024. This milestone accompanies a record-breaking 9.3 gigawatts (GW) of new solar module manufacturing capacity added in the same quarter, according to the US Solar Market Insight Q4 2024 report released today by the Solar Energy Industries Association (SEIA) and Wood Mackenzie.

The US now boasts nearly 40 GW of solar module manufacturing capacity, enough to meet almost all domestic demand. Five new or expanded factories in Alabama, Florida, Ohio, and Texas played a crucial role in this growth, reflecting the industry's rapid expansion and a shift toward strengthening domestic energy security.

“Federal solar policies and increased private investments are strengthening our nation’s energy security and creating thousands of new job opportunities for American workers,” said SEIA President and CEO Abigail Ross Hopper. “The United States is stepping up to take market share from foreign competitors and making sure that the jobs and economic growth from solar are benefiting American communities.”

Record installations across the industry

The US solar industry added 8.6 GW of electricity generation capacity in Q3, representing a 21% year-over-year increase and marking the largest Q3 ever for the sector. Utility-scale projects led the way, contributing 6.6 GW of new capacity as utilities and businesses ramped up their solar adoption to meet soaring electricity demand.

Commercial solar installations saw a 44% year-over-year increase, while community solar grew by 12%. Texas emerged as the national leader in solar deployment, adding 2.4 GW in Q3 alone, accounting for 26% of the nation's new capacity this year. Florida followed closely, with nearly 30,000 households adopting solar in 2024.

Over the past two years, federal incentives have enabled 1.4 million American households to install solar systems, significantly lowering their energy costs.

Industry outlook and challenges

The report highlights robust demand for solar energy, forecasting annual installation volumes exceeding 43 GW from 2025 onwards. By 2029, the US is projected to reach a cumulative solar capacity of nearly 450 GW, enough to power more than 71 million homes.

However, the industry faces challenges such as interconnection delays, labor shortages, supply chain constraints, and policy hurdles. “Our current outlook for the next five years has the US solar industry growing 2% per year on average,” said Michelle Davis, head of solar research at Wood Mackenzie.

Total solar deployment in 2024 is expected to surpass 40 GW, underscoring the sector's critical role in shaping the nation’s renewable energy future.