US installed record new solar capacity to grid in 2024

The US installed a record-breaking 50 GW of new solar capacity in 2024, the largest single year of new capacity added to the grid by any energy technology in over two decades.

According to the U.S. Solar Market Insight 2024 Year in Review report released by the Solar Energy Industries Association (SEIA) and Wood Mackenzie, solar and storage account for 84% of all new electric generating capacity added to the grid in 2024.

In addition to historic deployment, surging US solar manufacturing emerged as a landmark economic story in 2024. Domestic solar module production tripled in 2024, and at full capacity, US factories can now produce enough to meet nearly all demand for solar panels in the US. Solar cell manufacturing also resumed in 2024, strengthening America’s energy supply chain and cementing its place as a solar powerhouse.

Total US solar capacity is expected to reach 739 GW by 2035, but the report forecasts include scenarios showing how policy changes could impact the solar market. Sudden changes to federal tax credits, supply chain availability, and permitting policy will create uncertainty for investors, increase costs for developers and manufacturers, and cause a slowdown in solar deployment.

The low case forecast shows a 130 GW decline in solar deployment over the next decade compared to the base case, representing nearly US$250 billion of lost investment. A slowdown at this scale could leave the US without the electricity needed to meet rising demand, threatening growth in the manufacturing and technology sectors that rely on abundant power.

Many of the fastest-growing solar states such as Texas, Indiana, and Florida would see the largest declines in deployment under the low-case scenario. Texas alone could lose out on over US$50 billion of solar investment over the next decade.

Texas led all states for new solar capacity additions last year, replicating a record-setting 2023 with 11.6 GW of new installations. In total, 21 states set new annual installation records, and 13 states added over 1 GW of new solar capacity in 2024.

The utility scale segment saw historic gains in 2024, growing by 33% y/y with a record 41.4 GW of installed capacity. The community and commercial solar markets also set annual records, growing by 35% and 8%, respectively. The residential solar market experienced its lowest year of installations since 2021 due to state-level policy changes and elevated interest rates nationally. Forecasts show that the market is expected to rebound over the next decade.