The United States set a new record in 2024 by adding 50 gigawatts (GW) of solar capacity, marking the largest single-year increase in new capacity by any energy technology in over two decades.

According to the U.S. Solar Market Insight 2024 Year in Review report released by the Solar Energy Industries Association (SEIA) and Wood Mackenzie, solar and storage accounted for 84% of all new electric generating capacity added to the grid last year.

“Solar and storage can be built faster and more affordably than any other technology, ensuring the United States has the power needed to compete in the global economy and meet rising electricity demand,” said SEIA president and CEO Abigail Ross Hopper. “America’s solar and storage industry set historic deployment and manufacturing records in 2024, creating jobs and driving economic growth. It’s critical that lawmakers continue to support an ‘all of the above’ energy strategy that fosters the growth of American energy sources like solar and storage.” 

Surge in U.S. solar manufacturing

In addition to this historic growth, the report highlights a surge in U.S. solar manufacturing in 2024. Domestic solar module production tripled, and U.S. factories are now operating at full capacity, able to meet nearly all of the country’s demand for solar panels. Solar cell manufacturing also resumed, further strengthening the nation’s energy supply chain and solidifying its position as a global solar leader.

According to the report, total U.S. solar capacity is expected to reach 739 GW by 2035, but it also forecasts potential scenarios showing how policy changes could impact the solar market. Sudden shifts in federal tax credits, supply chain availability, and permitting policy could create uncertainty for investors, increase costs for developers and manufacturers, and slow down solar deployment.

Potential decline

The low-case forecast in the report shows a 130 GW decline in solar deployment over the next decade compared to the base case, which would represent nearly $250 billion in lost investment. Such a slowdown could leave the U.S. without the necessary electricity to meet rising demand, threatening growth in the manufacturing and technology sectors that rely on abundant power.

The report also notes that some of the fastest-growing solar states, including Texas, Indiana, and Florida, would see the largest declines in deployment under the low-case scenario. Texas alone could lose more than $50 billion in solar investment over the next decade.

Texas leads U.S. solar additions

In 2024, Texas led all states for new solar capacity additions, replicating a record-setting 2023 with 11.6 GW of new installations. In total, 21 states set new annual installation records, and 13 states added over 1 GW of new solar capacity.

The utility-scale segment saw historic gains in 2024, growing by 33% year-over-year, with a record 41.4 GW of installed capacity. The community and commercial solar markets also set annual records, growing by 35% and 8%, respectively. The residential solar market, however, experienced its lowest year of installations since 2021, largely due to state-level policy changes and elevated interest rates nationally. The report forecasts that the residential market is expected to rebound over the next decade.