The U.S. solar energy sector experienced significant growth in 2024. Solar energy accounted for 64% of all new electricity-generating capacity added to the nation’s grid. Yet, challenges remain that could shape the future of this renewable energy source.
The expansion of American solar energy seen this year has brought production to a level capable of powering approximately 37 million homes. Texas and Florida led the way in new solar capacity, adding 7.9 gigawatts and 3.1 gigawatts, respectively.
Concurrently, the domestic solar manufacturing industry also saw a major boost. U.S. solar module production capacity reached nearly 40 gigawatts by the third quarter of 2024. That’s up from just 7 gigawatts in mid-2022.
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Experts say the Inflation Reduction Act and the Bipartisan Infrastructure Law helped boost solar expansion.
Despite these milestones, experts highlight aging grid infrastructure, a shortage of skilled labor and interconnection delays as key obstacles to further solar energy expansion.
Additionally, the incoming Trump administration has announced plans to impose tariffs on imports. Those tariffs could raise costs for solar projects and slow development.
Looking ahead, the Solar Energy Industries Association forecasts an annual average of 43 gigawatts of new solar installations between 2025 and 2029. However, the policy environment under the new administration remains uncertain, with potential changes to green energy funding and tax incentives on the horizon.
[Jack]
THE U.S. SOLAR ENERGY SECTOR SAW SIGNIFICANT GROWTH IN 2024-
BUT CHALLENGES REMAIN THAT COULD SHAPE ITS FUTURE.
ACCORDING TO THE SOLAR ENERGY INDUSTRIES ASSOCIATION, THIS RENEWABLE POWER SOURCE ACCOUNTED FOR 64% OF ALL NEW ELECTRICITY-GENERATING CAPACITY ADDED TO THE NATION’S GRID THIS YEAR-
NOW PRODUCING ENOUGH POWER FOR APPROXIMATELY 37 MILLION HOMES.
TEXAS AND FLORIDA LED THE NATION IN ADDED SOLAR CAPACITY, WITH 7.9 GIGAWATTS AND 3.1 GIGAWATTS, RESPECTIVELY.
MEANWHILE, THE DOMESTIC SOLAR MANUFACTURING INDUSTRY ALSO EXPANDED SIGNIFICANTLY.
SUPPORTED BY THE INFLATION REDUCTION ACT AND BIPARTISAN INFRASTRUCTURE LAW, THE U.S. INCREASED ITS SOLAR MODULE PRODUCTION CAPACITY TO NEARLY 40 GIGAWATTS IN QUARTER THREE-
UP FROM JUST 7 GIGAWATTS IN MID-2022.
DESPITE THIS RECORD GROWTH, THERE ARE STILL HURDLES THAT MAY HINDER BOTH CURRENT AND FUTURE SOLAR EXPANSION.
ir=”ltr”>EXPERTS HAVE CITED AGING GRID INFRASTRUCTURE, SKILLED LABOR SHORTAGES, AND INTERCONNECTION DELAYS AS POTENTIAL BARRIERS TO CONTINUED BUILDOUT OF THIS RENEWABLE.
dir=”ltr”>ADDITIONALLY, THE INCOMING TRUMP ADMINISTRATION HAS ANNOUNCED PLANS TO IMPOSE TARIFFS ON IMPORTS, POTENTIALLY INCREASING COSTS FOR SOLAR PROJECTS.
LOOKING AHEAD, THE SOLAR ENERGY INDUSTRIES ASSOCIATION PROJECTS THE U.S. WILL INSTALL AN ANNUAL AVERAGE OF 43 GIGAWATTS FROM 2025 TO 2029.
HOWEVER, THE LONG-TERM POLICY ENVIRONMENT UNDER THE NEW ADMINISTRATION REMAINS UNCERTAIN-
WITH POSSIBLE CHANGES TO GREEN ENERGY FUNDING AND TAX INCENTIVES ON THE HORIZON.
FOR MORE STORIES ABOUT AMERICAN RENEWABLE ENERGY, DOWNLOAD THE STRAIGHT ARROW NEWS APP AND SIGN UP FOR ALERTS FROM ME- JACK AYLMER.
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