U.S. Photo voltaic Installations Skyrocket in 2023 in Report-Setting 1st Full Yr of Inflation Discount Act

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For the primary time in historical past, photo voltaic accounts for over 50% of recent electrical energy capability added to the grid

WASHINGTON, D.C. — The U.S. photo voltaic trade added a record-shattering 32.4 gigawatts (GW) of recent electrical producing capability in 2023, a 37% enhance from the earlier document set in 2021 and a 51% enhance from 2022.

In line with the U.S. Photo voltaic Market Perception 2023 Yr in Overview launched as we speak by the Photo voltaic Vitality Industries Affiliation (SEIA) and Wooden Mackenzie, photo voltaic accounts for 53% of all new electrical producing capability added to the grid final 12 months. This marks the primary time in 80 years {that a} renewable electrical energy supply has accounted for over 50% of annual capability additions.

“If we keep the course with our federal clear vitality insurance policies, complete photo voltaic deployment will quadruple over the subsequent ten years,” stated SEIA president and CEO Abigail Ross Hopper. “The Inflation Discount Act is supercharging photo voltaic deployment and having a cloth impression on our financial system, serving to America’s photo voltaic module manufacturing base develop 89% in 2023. We should defend and optimize the insurance policies which might be driving these investments and creating jobs, and the stakes within the upcoming election couldn’t be greater.”

Complete U.S. photo voltaic capability is anticipated to develop to 673 GW by 2034, sufficient to energy greater than 100 million properties.

The report contains forecast eventualities that present how coverage and financial elements may impression the photo voltaic market. The U.S. photo voltaic trade at present faces a number of uncertainties, together with coverage outcomes related to the upcoming presidential election. The eventualities contemplate numerous elements together with rates of interest, tax credit score financing, commerce coverage, provide chain availability, and interconnection, amongst others, over the subsequent 10 years. There’s a 200 GW distinction between the high- and low-case forecasts by 2034.

“A excessive case for U.S. photo voltaic with elevated provide chain stability, extra tax credit score financing, and decrease rates of interest would enhance our outlook 17%,” stated Michelle Davis, head of world photo voltaic at Wooden Mackenzie and lead creator of the report. “A low case with provide chain constraints, much less tax credit score financing, and static rates of interest would lower our outlook 24%. Numerous coverage and financial outcomes could have huge implications for the U.S. photo voltaic trade.”

Photo voltaic module manufacturing capability grew from 8.5 GW to 16.1 GW in 2023. Nonetheless, record-low costs for modules and a troublesome financial setting may make it troublesome for U.S. producers to comply with by way of on introduced amenities. In 2023, costs for monofacial and bifacial photo voltaic modules fell 26% and 31%, respectively. The US at present doesn’t have any ingot, wafer, or cell manufacturing amenities in operation, representing a possibility for progress.

Each photo voltaic market section noticed year-over-year progress in 2023, bringing complete put in photo voltaic capability in america to 177 GW. The utility-scale sector alone added 22.5 GW of recent capability, whereas practically 800,000 Individuals added photo voltaic to their properties.

Vitality storage use continues to develop throughout the nation. In 2023, photo voltaic + storage accounted for 13% of residential installations and 5% of non-residential installations. In 2024, 25% of recent residential installations and 10% of non-residential installations could have storage.

Texas led the nation for brand new photo voltaic installations with 6.5 GW, eclipsing California for the second time within the final three years. California’s residential photo voltaic market will wrestle in 2024 after modifications to web metering insurance policies take impact, contributing to a projected 36% decline throughout all segments within the state.

Colorado and Ohio are among the many prime 10 photo voltaic states in 2023 for the primary time in over a decade, whereas Wisconsin made its debut look within the prime 10. Greater than half of U.S. states have 1 GW of complete put in photo voltaic capability.

Be taught extra at seia.org/smi.

About SEIA®: 

The Photo voltaic Vitality Industries Affiliation® (SEIA) is main the transformation to a clear vitality financial system, creating the framework for photo voltaic to realize 30% of U.S. electrical energy era by 2030. SEIA works with its 1,000 member corporations and different strategic companions to combat for insurance policies that create jobs in each group and form truthful market guidelines that promote competitors and the expansion of dependable, low-cost solar energy. Based in 1974, SEIA is the nationwide commerce affiliation for the photo voltaic and photo voltaic + storage industries, constructing a complete imaginative and prescient for the Photo voltaic+ Decade by way of analysis, training and advocacy. Go to SEIA on-line at www.seia.org and comply with @SEIA on Twitter, LinkedIn and Instagram.

Media Contact: 

Jen Bristol, SEIA’s Senior Director of Communications, jbristol@seia.org (202) 556-2886

Morgan Lyons, SEIA’s Director of Communications, mlyons@seia.org (202) 556-2872

Information launch from SEIA.

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