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

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U.S. photo voltaic trade 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 america now exceeds 31 gigawatts (GW) — an almost four-fold improve for the reason that Inflation Discount Act (IRA) grew to become regulation in 2022.

Based on the U.S. Photo voltaic Market Perception Q3 2024 report launched as we speak by the Photo voltaic Vitality Industries Affiliation (SEIA) and Wooden Mackenzie, federal clear vitality insurance policies proceed to drive manufacturing and deployment development because the photo voltaic trade put in 9.4 GW of recent electrical era capability in Q2 2024.

In two years beneath the IRA, the photo voltaic trade 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 properties have put in photo voltaic for the reason that IRA handed.

“The photo voltaic and storage trade is popping federal clear vitality insurance policies into motion by quickly creating jobs and powering financial development in all 50 states, significantly in battleground states like Arizona, Nevada and Georgia,” stated SEIA president and CEO Abigail Ross Hopper. “We at the moment are manufacturing historic quantities of photo voltaic vitality in America, and shortly, we can have sufficient home module manufacturing to produce practically 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 high 10 photo voltaic states in 2024.

“The photo voltaic trade had an excellent second quarter, largely resulting from development within the utility-scale phase,” stated 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 tools shortages, and constraints on labor availability. The trade additionally faces uncertainty associated to newly proposed tariffs and the presidential election. There may be presently lots to navigate within the photo voltaic trade.”

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 practically three years. Nevertheless, the residential photo voltaic market is predicted to see development once more in 2025 and is projected to set annual information from 2026-2029.

Annual photo voltaic installations will develop at 4% on common over the following a number of years because the trade contends with beforehand talked about challenges. By 2029, whole 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 document second quarter for the trade. Whereas installations declined 21% quarter-over-quarter, they elevated 29% from a 12 months 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 services continued to return on-line.
• Texas was the main state for photo voltaic installations within the first half of the 12 months, with 5.5 GW_dc on-line — practically 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 throughout the state’s transition to web billing. We count on residential photo voltaic installations to hit a ground this 12 months, driving a 19% contraction in residential photo voltaic nationwide.
• The industrial 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 had been excessive resulting from tasks lastly coming on-line after varied delays all through 2023.
• On this report, we have now integrated our estimated impacts of potential new antidumping and countervailing duties (AD/CVD) on imports of crystalline silicon cells and modules from 4 Southeast Asian nations. Preliminary determinations for these tariffs are anticipated this fall. Whereas there’s nonetheless appreciable uncertainty round remaining particulars, we count on that tariff impacts on photo voltaic deployment can be modest. There may be 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 nations, increasing home manufacturing, and sources of skinny movie modules.
• Our newest five-year outlooks present the US photo voltaic trade will persistently set up a minimum of 40 GW_dc per 12 months from 2025 onward. This 12 months, 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 trade. Utility-scale photo voltaic — the most important phase — continues to be restricted by an absence of labor availability, excessive voltage tools constraints, and interconnection delays.

Photo voltaic Cheat Sheet

Present Photo voltaic Capability:
209.8 GW

Whole Photo voltaic Jobs:
263,883

Worth of Photo voltaic Market in 2023:
$60.1 billion

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

Whole Photo voltaic Programs Put in within the U.S.:
5,137,576

10-year Photo voltaic PV Value Decline:
43%

Carbon Emissions Diminished:
224 million metric tons

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

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

For extra: Photo voltaic Information Cheat Sheet.

Courtesy of SEIA.