Solar Industry Research Data (2024)

The Past Ten Years have Set the Stage for the Solar+ Decade

Solar has seen massive growth since 2000. There are now nearly 210 gigawatts (GW) of solar capacity installed nationwide, enough to power 36 million homes. In the last decade, solar deployments have experienced an average annual growth rate of 25%. Strong federal policies like the solar Investment Tax Credit (ITC), rapidly declining installation costs, and increasing demand for clean electricity across the private and public sector have driven this growth.

Solar as an Economic Engine

Growth in Solar is Led by Falling Prices

Inflation, Supply Chain Constraints Lead to Price Volatility

Solar’s Share of New Capacity has Grown Rapidly

The U.S Solar Industry is a 50-State Market

Prices Decline for Rooftop Solar, but Higher Soft Costs Remain

Storage is Increasingly Paired with All Forms of Solar

Residential Market Continues to Diversify

IRA to Help Drive Emerging Commercial Markets

Community Solar Expansion

While early growth for community solar installations was led primarily by three key markets – New York, Minnesota, and Massachusetts – a growing list of states with community solar programs have helped diversify the market. Maine and Illinois continued build out of extensive community solar pipelines in 2023, while markets in Maryland and New Jersey saw large improvements from 2022. As more states and utilities create and expand community solar programs, access to solar will expand to all types of households and businesses.

Utility-Scale Segment Rebounds from Supply Challenges

Supply chain challenges stemming from trade action stymied utility-scale installations in 2022. As module supply improved throughout 2023, many delayed projects were finally brought online, along with large portions of the previously existing 2023 pipeline. By year’s end, over 30 GW of new utility-scale projects had been installed, more than doubling 2022 volumes. The utility scale segment has continued to deploy at a record pace in 2024, outpacing new contracts. However, procurement interest from states, utilities, and corporations looking to meet clean energy goals remains, and will support growth in the segment going forward.

Solar PV Growth Forecast

After supply chain challenges slowed industry growth in 2022, improvements in module supply helped propel the industry in recent quarters. Over 21 GW have been installed so far in 2024, the strongest first half of a year in the industry’s history. Installations are expected to hold relatively steady around 40-45 GW annually over the next five years. The Inflation Reduction Act has made these installation volumes possible by providing key tax credits that provide long-term certainty. However, challenges in interconnection and high voltage power equipment and labor availability present challenges to faster growth.

Inflation Reduction Act Boosts Solar Outlook

The passage of the Inflation Reduction Act has drastically improved baseline projections for the solar industry over the next five years. In the next half decade, the long-term tax incentives and manufacturing provisions in the IRA provide the market certainty needed to boost expected solar deployment by 46% compared to pre-IRA projections. Still, the industry awaits guidance from the Biden Administration on key provisions of the law. The specifics of this guidance will have massive implications for the industry’s ability to maximize the potential of the IRA, and could unlock further growth in years to come.

New Manufacturing to Secure Supply Chain

In addition to spurring deployment of solar energy, the IRA created increased interest in U.S. solar and storage manufacturing. Over 15 GW of new U.S. module manufacturing capacity came online in 2024. As the industry faces uncertainty as a result of new trade action, U.S. solar manufacturing will be help ease the supply challenges that have hampered the industry in years past. In addition, massive investment in battery storage manufacturing has been announced, and these manufacturing facilities will ensure that the solar and storage industries have access to reliable, domestic supply for future growth.

More Aggressive Growth Needed to Reach Climate Goals

While projected growth over the next 10 years spurred by the IRA puts the solar market in reach of ambitious clean energy goals set by the industry and the Biden administration, more work is needed to achieve the pace required for a 100% clean energy electricity system. Annual installs will need to grow from less than 22 GW in 2022 to nearly 140 GW by 2030, with cumulative totals over 800 GW by the end of the decade. A combination of private sector innovation and stable, long-term public policy will set the solar industry on a path to achieving these more aggressive goals to address climate change and decarbonize theeconomy.

Solar Helps Fortune 500 Companies Save Money

Data from SEIA’s annual Solar Means Business report show that major U.S. corporations, including Meta, Amazon, Apple, Walmart, and Microsoft are investing in solar and renewable energyat an incredible rate. Through June 30 2022, the top corporate solar users in America have installed almost 19 GW of capacity across nearly 50,000different facilities across the country.

Other key takeaways:

• Corporate solar adoption has expanded rapidly over the past several years, with about half of all capacity installed since 2020.
• Off-site solar made up much of the growth in corporate solar, with 77% of capacity since 2020 being off-site.
• The systems tracked in this report generate enough electricity each year to power 3.2million U.S. homes.

You can explore SEIA’s Solar Means Business report, including interactive maps and data tools on the top corporate solar users in the U.S.