Image source: Canva.com
The U.S. solar industry achieved a milestone in the third quarter of 2024, installing 8.6 gigawatts (GW) of new electricity generation capacity, according to the Solar Market Insight Q4 2024 report by the Solar Energy Industries Association (SEIA) and Wood Mackenzie. This represents a 21% year-over-year increase, making it the largest Q3 performance in the industry’s history.
Utility-scale solar projects drove much of this growth, with 6.6 GW of new capacity coming online. Utilities and businesses are increasingly turning to solar to meet rising electricity demands. Meanwhile, the commercial and community solar sectors experienced robust year-over-year growth, expanding by 44% and 12%, respectively.
Texas emerged as the leader in solar deployment, adding 2.4 GW of capacity in Q3 alone, accounting for 26% of all new capacity installed nationwide in 2024. Florida ranked second, with nearly 30,000 households adopting solar solutions this year.
Over the past two years, 1.4 million American households have leveraged federal incentives to install solar panels, reducing their energy costs and contributing to the country’s transition to renewable energy.
“Our current outlook for the next five years has the U.S. solar industry growing 2% per year on average, reaching a cumulative total of nearly 450 GW by the end of 2029,” said Michelle Davis, head of solar research at Wood Mackenzie and lead author of the report. Davis noted that while demand for solar remains strong, the industry faces challenges such as interconnection delays, labor shortages, supply chain constraints, and policy issues.
The report predicts total solar installations in 2024 will surpass 40 GW, with annual volumes exceeding 43 GW for the rest of the decade, cementing solar energy’s role in the U.S. energy landscape.
U.S. solar energy market poised for major growth, projected to hit $73.5 billion by 2029
Source: SEIA
