Report: 84% of US Power Added in 2024 was Solar
TL/DR –
Solar energy accounted for 84% of the new electricity generation capacity added to the U.S. power grid in 2024, the highest single year of growth by any energy technology in over two decades. However, the solar industry faces potential challenges due to the new U.S. administration’s energy policies, including the possibility of removal of tax credits issued under the 2022 Inflation Reduction Act. If changes to such policies occur, solar deployment may significantly decrease, resulting in a loss of nearly $250 billion of investment over the next decade, the Solar Energy Industries Association and Wood Mackenzie groups warned.
US Solar Energy Industry Faces Challenges Despite Record Growth
US solar energy accounted for 84% of new electricity generation capacity in 2024, however, it faces potential setbacks under the current administration’s energy policies, according to a recent report.
The US installed a record 50 gigawatts (GW) of new solar capacity in 2024, marking the largest single-year growth by any energy technology in over 20 years, said the report by Solar Energy Industries Association (SEIA) and Wood Mackenzie.
Notably, the solar industry significantly benefited from subsidies in the 2022 Inflation Reduction Act (IRA), a landmark climate change law enacted under former President Joe Biden.
The Trump administration, however, indicated a review of federal funding plans, potentially impacting clean energy deployment through changes to the 2022 IRA tax credits.
The clean-energy sector has been on high alert since Trump’s election, with his initial executive orders focusing on boosting US fossil-fuel production and suspending funding for clean-energy projects and federal wind projects.
Despite these challenges, the report predicts US solar capacity could reach 739 GW by 2035. However, alterations to federal tax credits, supply chain issues, and permitting policies may decelerate solar deployment.
In the worst-case scenario, reductions in solar deployment over the next decade could reach 130 GW compared to the base case, representing nearly $250 billion of lost investment.
Sylvia Levya Martinez, Principal Analyst, North America Utility-Scale Solar for Wood Mackenzie, warned that significant changes to solar policies could severely hinder the solar market’s continued growth despite its 2024 success.
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