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U.S. solar manufacturing booms, but federal incentives face uncertainty

The U.S. solar manufacturing sector has surged to record levels, but its continued growth remains uncertain as federal incentives that fueled the expansion face potential policy changes in Washington.

The rapid growth of the U.S. solar industry, fueled by federal incentives, is now at risk as policymakers in Washington debate the future of renewable energy support.

According to a report released by the Solar Energy Industries Association (SEIA), the United States now has the capacity to produce enough solar modules to meet domestic demand. Since 2020, solar module manufacturing capacity has expanded sevenfold, reaching 50 gigawatts – reducing reliance on foreign imports and solidifying America’s leadership in renewable energy.

Despite this progress, the U.S. still imported a similar volume of solar panels in 2023, primarily from China.

“Reaching 50 GW of domestic solar manufacturing capacity is a testament to what we can achieve with smart, business-friendly public policies in place,” said SEIA President and CEO Abigail Ross Hopper. “The U.S. is now the third-largest module producer in the world because of these policy actions.”

However, with federal incentives under threat, the industry’s momentum could slow, raising concerns about the future of domestic solar manufacturing.

Solar industry faces uncertainty amid potential policy shifts

Source: Governor’s Wind and Solar Energy Coalition

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