The first quarter of 2024 witnessed the greatest increase in solar module manufacturing growth in American history. 11 GW of new capacity was added by the U.S. as per the U.S. Solar Market Insight Q2 2024 study published by Wood Mackenzie and the Solar Energy Industries Association (SEIA). According to the report, the country’s ability to produce solar modules surpasses 26 gigawatts per year. Of the total new electricity-generating capacity added to the grid, 75% came from solar.
Solar Module Manufacturing Trend
The industry added 11.8 GW of new solar capacity, according to the report, increasing the total capacity to 200 GW in the US. It was the second-largest quarter for installations in the industry, surpassed only by Q4 2023. The United States added more than 40 GW of new solar capacity last year, according to new data from 2023. According to recent estimates from Wood Mackenzie, the US solar sector will add 40 GW more in 2024.
The expansion of the utility-scale industry, which added about 10 GW of new capacity in Q1, is driving record solar installation. Texas and Florida lead all states in new solar capacity in Q1 due to their robust utility-scale development. They installed 686 MW and 546 MW, respectively, while other areas like New Mexico and Ohio also had a good quarter. However, California’s regulatory changes are hurting the home solar market, which is having its worst quarter in the past two years.
“The U.S. solar industry continues to show strength in terms of deployments,” added Michelle Davis, head of global solar at Wood Mackenzie and lead author of the report. “At the same time, the solar industry faces several challenges to its continued growth including availability of labor, high voltage equipment constraints, and continued trade policy uncertainty.”