The United States achieved a historic milestone by installing 50 gigawatts (GW) of new solar capacity in 2024, marking the largest single-year capacity addition in over two decades. The U.S. Solar Market Insight 2024 Year in Review report, released by the Solar Energy Industries Association (SEIA) and Wood Mackenzie, highlights that solar and storage combined accounted for 84% of all new electric generating capacity added to the grid in 2024.
Alongside this record deployment, the surge in U.S. solar manufacturing was another key development in 2024. Domestic solar module production tripled, and U.S. factories now have the capacity to meet nearly all solar panel demand in the country. Solar cell manufacturing resumed, further strengthening the nation’s energy supply chain and solidifying its role as a solar energy leader.
SEIA President and CEO Abigail Ross Hopper stated that solar and storage are the fastest and most affordable energy solutions, ensuring the U.S. can compete globally and meet rising electricity demand. She emphasized that 2024’s record-breaking deployment and manufacturing created jobs and boosted economic growth, urging lawmakers to support an inclusive energy strategy that promotes American solar and storage growth.
The total U.S. solar capacity is expected to hit 739 GW by 2035, but the report also considers how policy changes could impact this growth. Sudden shifts in federal tax credits, supply chain issues, and permitting policy could create uncertainty, raising costs for developers and slowing down solar deployment.
The low-case scenario forecasts a 130 GW decline in solar deployment over the next decade, resulting in nearly $250 billion in lost investments. Such a slowdown could create a power shortage, undermining the growth of sectors that depend on reliable energy supply, including manufacturing and technology.
States like Texas, Indiana, and Florida—among the fastest-growing solar markets—would face significant declines in solar deployment in the low-case scenario. Texas alone could see more than $50 billion in lost solar investment over the next decade.
Sylvia Leyva Martinez, Principal Analyst at Wood Mackenzie, stated that last year’s record solar installations were driven by policies and credits from the Inflation Reduction Act. However, she warned that challenges, including rapid electricity demand growth, could hinder the industry’s progress if these policies were changed or removed.
Texas led all states in new solar capacity additions, matching its record-setting 2023 performance with 11.6 GW of new installations. Overall, 21 states set new annual installation records, and 13 states added more than 1 GW of solar capacity in 2024.
The utility-scale solar market saw unprecedented growth in 2024, with a 33% year-over-year increase, totaling a record 41.4 GW of installed capacity. The community and commercial solar markets also set new annual records, growing by 35% and 8%, respectively. However, the residential solar market experienced its lowest installation year since 2021, due to state-level policy changes and higher national interest rates. Forecasts indicate a rebound in the residential sector over the next decade.
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