In a groundbreaking achievement, the Solar Energy Industries Association (SEIA) reports that the US solar industry witnessed an astounding surge, adding a record-breaking 32.4 gigawatts (GW) of new electric generating capacity in 2023. This marks a remarkable 37% increase from the previous record set in 2021 and an astonishing 51% surge from 2022. 6r3w71

According to the US Solar Market Insight 2023 Year in Review, tly released by SEIA and Wood Mackenzie, solar energy contributed a significant 53% to the new electric generating capacity added to the grid in 2023. This milestone signifies the first instance in 80 years where a renewable electricity source has ed for over 50% of annual capacity additions.

SEIA President and CEO, Abigail Ross Hopper, expressed optimism about the future, stating, "If we stay the course with our federal clean energy policies, total solar deployment will quadruple over the next ten years." Hopper emphasized the pivotal role played by the Inflation Reduction Act in supercharging solar deployment, resulting in an 89% growth in America's solar module manufacturing base in 2023.

The report forecasts a remarkable growth trajectory, projecting total US solar capacity to reach 673 GW by 2034, capable of powering over 100 million homes. However, uncertainties loom, with potential impacts from policy outcomes associated with the presidential election. The scenarios presented in the report consider factors such as interest rates, tax credit financing, trade policy, supply chain availability, and interconnection.

“A high case for US solar with increased supply chain stability, more tax credit financing, and lower interest rates would increase our outlook 17%,” said Michelle Davis, head of global solar at Wood Mackenzie and lead author of the report. “A low case with supply chain constraints, less tax credit financing, and static interest rates would decrease our outlook 24%. Various policy and economic outcomes will have big implications for the US solar industry.”

Source: Solar Energy Industries Association

Solar module manufacturing capacity witnessed significant growth, increasing from 8.5 GW to 16.1 GW in 2023. Despite challenges posed by record-low module prices and a challenging economic environment, opportunities for growth abound, especially in ingot, wafer, and cell manufacturing.

The report also unveiled robust growth across all solar market segments in 2023, contributing to a total installed solar capacity of 177 GW in the United States. The utility-scale sector alone added 22.5 GW, while nearly 800,000 Americans embraced solar energy for their homes. 

The adoption of energy storage continues to rise nationwide, with solar + storage ing for 13% of residential installations and 5% of non-residential installations in 2023. Projections for 2024 anticipate even more substantial growth, with 25% of new residential installations and 10% of non-residential installations incorporating storage. 

Texas emerged as the leader in new solar installations, suring California for the second time in three years. The report also highlighted the inclusion of Colorado and Ohio among the top 10 solar states in 2023, with Wisconsin making its debut appearance. Remarkably, over half of US states now boast 1 GW of total installed solar capacity, signaling a widespread embrace of solar energy across the nation.