Solar cell manufacturing resumed in the third quarter (Q3) as silicon cells were manufactured in the United States for the first time since 2019, marking a pivotal moment for America’s surging solar manufacturing sector, according to Wood Mackenzie. Picture used for illustrative purpose.
The United States added a record-breaking 9.3 gigawatts (GW) of new solar module manufacturing capacity in Q3 2024, with US solar module factories now being able to produce enough to meet nearly all demand for solar in the United States when running at full capacity, according to Wood Mackenzie.
The latest US Solar Market Insight Q4 2024 report released by the Solar Energy Industries Association (SEIA) and Wood Mackenzie found that five new or expanded factories in Alabama, Florida, Ohio and Texas bring total US solar module manufacturing capacity to nearly 40 GW.
Solar cell manufacturing resumed in the third quarter (Q3) as silicon cells were manufactured in the United States for the first time since 2019, marking a pivotal moment for America’s surging solar manufacturing sector, Wood Mackenzie noted.
“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.”
According to the Wood Mackenzie report, the US solar industry installed 8.6 GW of new electricity generation capacity in Q3, representing a 21% year-over-year increase and the largest Q3 ever for the industry.
The development follows the global trend of solar capacity being installed at a record pace in 2024, with global additions set to hit 593 GW this year, as per a report by London-based energy research firm Ember. That represents a jump of about 29% from last year, and comes on top of a near doubling of new installations in 2023.
The International Energy Agency estimates that meeting global energy and climate goals will require the global deployment of solar PV to grow on an unprecedented scale – thereby creating demand for a major additional expansion in manufacturing capacity.
According to the IEA, annual solar PV capacity additions need to more than quadruple to 630 gigawatts (GW) by 2030 to be on track with the IEA’s Roadmap to Net Zero Emissions by 2050. Global production capacity for polysilicon, ingots, wafers, cells and modules would need to more than double by 2030 from today’s levels.
In the US, the Wood Mackenzie and SEIA report found that utility-scale segment led the industry with 6.6 GW of new projects coming online. Utilities and businesses are driving this growth as they procure significant levels of solar to meet rising demand for electricity. The commercial and community solar markets also experienced strong gains in Q3, growing by 44% and 12% year-over-year, respectively.
According to the report, Texas continues to lead the nation in solar deployment, adding 2.4 GW of capacity in Q3. The Lone Star State accounts for 26% of all new capacity to come online so far in 2024. Florida has installed the second-most solar capacity in 2024, and nearly 30,000 Florida households have installed solar this year.
In the last two years, 1.4 million American households have used federal incentives to install solar and lower their energy costs.
“Our current outlook for the next five years has the U.S. solar industry growing 2% per year on average, reaching a cumulative total of nearly 450 GW by the end of 2029,” said Michelle Davis, head of solar research at Wood Mackenzie and lead author of the report. “Demand for solar remains robust, and annual installation forecasts would be higher if not for limitations the industry faces, including those related to interconnection, labor availability, supply constraints, and policy.”
Total solar deployment in 2024 is again expected to exceed 40 GW, followed by annual installation volumes of at least 43 GW for the remainer of the decade. By 2029, total US solar will be enough to power over 71 million homes.
