Report: U.S. Photo voltaic Panel Manufacturing Capability Grows Practically 4× Underneath New Federal Incentives

Join each day information updates from CleanTechnica on e-mail. Or comply with us on Google Information!

U.S. photo voltaic business added 9.4 GW of recent set up capability in Q2 2024, however challenges persist that hinder the market’s full potential.

ANAHEIM, California and WASHINGTON, D.C. — Photo voltaic module manufacturing capability in the USA now exceeds 31 gigawatts (GW) — a virtually four-fold improve because the Inflation Discount Act (IRA) grew to become regulation in 2022.

In keeping with the U.S. Photo voltaic Market Perception Q3 2024 report launched immediately by the Photo voltaic Power Industries Affiliation (SEIA) and Wooden Mackenzie, federal clear power insurance policies proceed to drive manufacturing and deployment development because the photo voltaic business put in 9.4 GW of recent electrical era capability in Q2 2024.

In two years below the IRA, the photo voltaic business has added 75 GW of recent capability to the grid, representing over 36% of all photo voltaic capability inbuilt U.S. historical past. Practically 1.5 million American houses have put in photo voltaic because the IRA handed.

“The photo voltaic and storage business is popping federal clear power insurance policies into motion by quickly creating jobs and powering financial development in all 50 states, notably in battleground states like Arizona, Nevada and Georgia,” mentioned SEIA president and CEO Abigail Ross Hopper. “We at the moment are manufacturing historic quantities of photo voltaic power in America, and shortly, we can have sufficient home module manufacturing to produce almost all U.S. demand for years to return.”

Texas continues its run as a dominant photo voltaic market, main the nation with 5.5 GW of photo voltaic capability put in within the first half of 2024. States with intently watched elections this November, together with Texas, Florida, Nevada, Ohio and Arizona, are among the many prime 10 photo voltaic states in 2024.

“The photo voltaic business had an ideal second quarter, largely resulting from development within the utility-scale phase,” mentioned Michelle Davis, head of world photo voltaic at Wooden Mackenzie and lead creator of the report. “However future photo voltaic development is being hindered by broader energy sector challenges — interconnection backlogs, electrical gear shortages, and constraints on labor availability. The business additionally faces uncertainty associated to newly proposed tariffs and the presidential election. There’s presently loads to navigate within the photo voltaic business.”

The residential photo voltaic market continued to contract in Q2 2024, pushed by coverage adjustments in California and excessive rates of interest nationally. The sector added 1.1 GW of recent capability in Q2, its lowest quarter in almost three years. Nevertheless, the residential photo voltaic market is predicted to see development once more in 2025 and is projected to set annual data from 2026-2029.

Annual photo voltaic installations will develop at 4% on common over the following a number of years because the business contends with beforehand talked about challenges. By 2029, complete U.S. photo voltaic capability is predicted to double to 440 GW.

Photo voltaic Market Perception Report Introduction

• In Q2 2024, the US photo voltaic market put in 9.4 GW_dc of capability, a file second quarter for the business. Whereas installations declined 21% quarter-over-quarter, they elevated 29% from a yr earlier.
• Photo voltaic accounted for 67% of all new electricity-generating capability added to the US grid within the first half of 2024.
• Home module manufacturing capability elevated by over 10 GW to 31.3 GW in Q2 2024 as extra amenities continued to return on-line.
• Texas was the main state for photo voltaic installations within the first half of the yr, with 5.5 GW_dc on-line — almost twice as a lot capability as Florida, the second-ranked state, which had 2.9 GW_dc.
• The residential phase continued to say no, with 1.1 GW_dc put in in Q2, a lower of 10% quarter-over-quarter and 37% year-over-year. California continued to drive this decline, shrinking 36% from the primary quarter through the state’s transition to web billing. We anticipate residential photo voltaic installations to hit a ground this yr, driving a 19% contraction in residential photo voltaic nationwide.
• The business photo voltaic phase put in 427 MW_dc in Q2 2024, 5% lower than Q1 2024 and 6% greater than Q2 2023.
• The group photo voltaic phase put in 270 MW_dc in Q2 2024, a decline of 12% each quarter-over-quarter and year-over-year. A handful of states noticed quarter-over-quarter development, however this was outweighed by declines in key markets like Maine, Massachusetts, and Illinois.
• The utility-scale phase put in 7.6 GW_dc, a strong 59% improve year-over-year. Whereas this displays a 23% decline from Q1 2024, first quarter volumes have been excessive resulting from tasks lastly coming on-line after numerous delays all through 2023.
• On this report, we now have included our estimated impacts of potential new antidumping and countervailing duties (AD/CVD) on imports of crystalline silicon cells and modules from 4 Southeast Asian international locations. Preliminary determinations for these tariffs are anticipated this fall. Whereas there may be nonetheless appreciable uncertainty round last particulars, we anticipate that tariff impacts on photo voltaic deployment will likely be modest. There’s enough cell and module manufacturing capability from a number of sources that isn’t topic to the proposed tariffs: manufacturing situated exterior of the goal international locations, increasing home manufacturing, and sources of skinny movie modules.
• Our newest five-year outlooks present the US photo voltaic business will constantly set up at the very least 40 GW_dc per yr from 2025 onward. This yr, installations are anticipated to say no 4%, pushed by a 2% decline within the utility-scale phase and a 19% decline within the residential phase. From 2025-2029, annual development will common 4% for your complete business. Utility-scale photo voltaic — the biggest phase — continues to be restricted by a scarcity of labor availability, excessive voltage gear constraints, and interconnection delays.

Photo voltaic Cheat Sheet

Present Photo voltaic Capability:
209.8 GW

Complete Photo voltaic Jobs:
263,883

Worth of Photo voltaic Market in 2023:
$60.1 billion

Variety of U.S. Photo voltaic Companies:
10,000+

Complete Photo voltaic Techniques Put in within the U.S.:
5,137,576

10-year Photo voltaic PV Value Decline:
43%

Carbon Emissions Decreased:
224 million metric tons

In 2023, a New Venture is Put in Each
39 seconds

Sufficient Photo voltaic Put in within the U.S. to Energy
35.8 million houses

For extra: Photo voltaic Knowledge Cheat Sheet.

Courtesy of SEIA.