Hello all, I’m back with another insightful peek into the fascinating world of solar energy. The year 2023 proved to be a landmark for the solar industry, as detailed by the U.S. Solar Market Insight, Year-in-Review 2023 report. Thanks to the Inflation Reduction Act, which President Biden signed into law the year before, the solar industry has been given a surge, adding a remarkable 32.4 GW of new electric generating capacity. This marks a significant 51% rise since 2022 – a staggering growth for any industry!
The future looks bright too. If we stay the course with our federal clean energy policies, it’s projected that total solar deployment could quadruple over the next ten years. This is excellent news for both American jobs and the economy. Notably, America’s solar module manufacturing base grew an outstanding 89% in 2023! It’s paramount that we maintain and optimize the policies that are driving these investments and creating jobs, especially with the next election looming.
By 2034, it’s estimated that the total U.S. solar capacity will soar to 673 GW – enough to power over 100 million homes! The time to consider solar panels for your home is right now, as the influx of solar companies is reshaping the industry landscape, increasing competition, and driving prices down.
However, along with this phenomenal growth, we face some unique challenges such as high interest rates, tax credit financing, U.S. supply chain issues, and interconnection. Furthermore, the uncertainty around the possibility of a new administration in 2025 could affect the solar market considerably. To understand the potential impact, the report generously provides high- and low-case forecast scenarios that underline how policy and economic factors might shape the solar market over the next decade.
Interestingly, the report highlights the possibility of differences amounting to 200 GW between the two forecasts. A high case, where the industry overcomes many of the existing challenges through stable interest rates, new tax credit financing, less supply chain risk, and resolved interconnection issues, could lead to a 17% increase in solar layout. Conversely, a low case scenario, with static interest rates, supply chain constraints, and less tax credit financing, could decrease this outlook by as much as 24%.
One crucial aspect touched upon by the report is the challenge of establishing a robust supply chain that can accommodate the rapid growth of the solar industry. Notably, U.S. solar module manufacturing saw a leap from 8.5 GW to 16.1 GW last year, showcasing remarkable progress in reducing reliance on imports and boosting domestic production.
Across all segments, the U.S solar industry enjoyed phenomenal year-over-year growth in 2023, bringing the total installed solar capacity in the U.S. to 177 GW. The utility-scale sector alone saw an addition of 22.5 GW of new capacity – an extraordinary feat in itself. Another encouraging trend is the addition of energy storage to solar installations, particularly in response to changes in net energy metering (NEM) policy and to enhance resiliency.
The rapid expansion of solar arrays for home use is also worth mentioning. Despite certain constraints, nearly 800,000 Americans chose to go solar in their homes in 2023 alone. It’s projected that by 2040, solar will make up the largest share of electric generating capacity in the US, a telling sign of the direction in which the wind is blowing.
Stay tuned for more updates from the world of solar. As always, if you’re contemplating a shift to solar and need advice or insights, feel free to reach out. Embrace the sun!
Until next time, keep shining!
Original Articlehttps://pv-magazine-usa.com/2024/03/06/solar-now-accounts-for-over-50-of-new-electricity-capacity-added-to-the-u-s-grid/
