An American-made solar energy system is no longer a dream. It’s happening, and it’s happening fast. Just three years after the passage of the Inflation Reduction Act (IRA), along with the Solar Energy Manufacturing for America Act (SEMA), new solar factories are springing up across the country. Together, these laws offer strong incentives to companies producing solar energy panels and components domestically.
According to SEIA’s latest report, U.S. module manufacturing capacity has crossed 8.6 gigawatts. Over 35 gigawatts more are in the pipeline. And it’s not just modules. Factories in states like Texas, Georgia, and Ohio are now producing cells, modules, and wafers. This marks a major comeback for the solar industry.
How SEMA supports U.S. solar growth?
The Solar Energy Manufacturing for America Act (SEMA) wasn’t passed as a separate law but was folded into the IRA under Section 45X. This provision gives per-watt tax credits for producing solar components like,
● Polysilicon
● Wafers
● Cells
● Modules
● Inverters
These credits have already sparked more than $45 billion in new investments. These credits help to create a clear path for investments. More importantly, it supports the benefits of solar energy beyond just clean power.
“This is a turning point,” said SEIA President Abigail Ross Hopper. “We’re finally seeing clean solar energy products made in America at scale.”
Leading manufacturers such as Qcells, First Solar, and Boviet are making their way in the solar industry. Their factories are supplying the demand for efficient and affordable solar for home and business use.
Supply Chain Developments and Solar Energy Storage Advances
Even as U.S. solar manufacturing ramps up, the road to full independence isn’t quite there yet. Critical parts, especially wafers and polysilicon, still come from overseas, mainly China.
That’s starting to change.
Solar energy storage is improving fast. Homeowners and businesses are turning to battery systems that store power for cloudy days or after sunset. This shift is making solar more reliable and much more appealing.
Put simply: smart storage + strong sourcing = a more stable solar future.
Solar for Home and Industry Gains Momentum
More homeowners and companies seek solar energy for residential use and commercial purposes to save on electricity costs. Demand for American-made solar energy panels is rising steadily. Many people are becoming more curious about how solar energy works and where the materials are sourced.
Additionally, the growth of solar energy services is expanding its support services from installation, maintenance, and system optimization. These services ensure solar systems perform well and provide long-term value.
New Rules, Risks & Rewards in 2025
Despite all the positive impacts and benefits of clean energy, the solar industry is facing new challenges from the mid of 2025. Initially, Trump introduced new tariffs that led to an increased cost of imported solar panels and accessories. And now, after the approval of Big Beautiful Bill, the 30% federal tax credit is set to expire on December 31, 2025. The major consequences include high solar installation costs, longer payback periods, and a lower affordability ratio for even middle-class homeowners who want to install solar energy systems. On the other hand, many solar companies have already declared bankruptcy, and job loss is also predicted in the future.
The industry may be mature, but this move threatens to choke the solar installation momentum. Energy crises are real, power outages are becoming more frequent, and energy bills are skyrocketing. There is still no better alternative to mitigate all these crises and solar will remain a worthy investment.
News Source: SEIA