US Solar Installations Soar in 2023, First Year of Inflation Act
TL/DR –
In 2023, solar power accounted for over 50% of new electricity capacity added to the US grid for the first time, with a record 32.4 gigawatts (GW) of new electric generating capacity, according to the Solar Energy Industries Association and Wood Mackenzie. This marked a 37% increase from the previous record set in 2021 and a 51% increase from 2022. The US solar industry is expected to quadruple over the next decade if current federal clean energy policies are maintained, and total US solar capacity is projected to grow to 673 GW by 2034, enough to power more than 100 million homes.
Solar accounts for over 50% of new electricity capacity added to the grid for the first time in history
In 2023, the U.S. solar industry added a record 32.4 gigawatts (GW) of new electric generating capacity, up 37% from 2021 and 51% from 2022, according to the U.S. Solar Market Insight 2023 Year in Review released by the Solar Energy Industries Association (SEIA) and Wood Mackenzie. This marks the first time in 80 years that a renewable electricity source has accounted for over 50% of annual capacity additions.
SEIA president Abigail Ross Hopper stated that if current federal clean energy policies persist, solar deployment will quadruple over the next decade. Further, U.S. solar capacity is projected to grow to 673 GW by 2034, sufficient to power over 100 million homes.
The report also highlighted uncertainties in the U.S. solar industry due to policy outcomes associated with the upcoming presidential election. Multiple factors such as interest rates, tax credit financing, trade policy, supply chain availability, and interconnection are expected to impact the solar market over the next 10 years, resulting in a 200 GW difference between the high- and low-case forecasts by 2034.
Solar module manufacturing capacity increased from 8.5 GW to 16.1 GW in 2023. Despite this, the prevailing economic environment and record-low prices for modules may challenge U.S. manufacturers’ ability to follow through on announced facilities. Meanwhile, all solar market segments witnessed year-over-year growth in 2023, with total installed solar capacity in the United States reaching 177 GW.
Energy storage use continues to grow across the country, and solar + storage accounted for 13% of residential installations and 5% of non-residential installations in 2023. Texas led the nation for new solar installations with 6.5 GW, surpassing California for the second time in the last three years.
Colorado and Ohio emerged among the top 10 solar states in 2023 for the first time in over a decade, while Wisconsin made its debut appearance in the top 10. More than half of U.S. states now have 1 GW of total installed solar capacity. Learn more at seia.org/smi.
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