According to the U.S. Solar Market Insight Q4 2024 report released by the Solar Energy Industries Association (SEIA) and Wood Mackenzie, the U.S. solar industry installed 8.6 GW of new electricity generation capacity in Q3, representing a 21% year-over-year increase and the largest Q3 ever for the industry.
The utility-scale segment led the industry with 6.6 GW of new projects coming online. Utilities and businesses are driving this growth as they procure significant levels of solar to meet rising demand for electricity. The commercial and community solar markets also experienced strong gains in Q3, growing by 44% and 12% year-over-year, respectively.
Texas continues to lead the nation in solar deployment, adding 2.4 GW of capacity in Q3. The Lone Star State accounts for 26% of all new capacity to come online so far in 2024. Florida has installed the second-most solar capacity in 2024, and nearly 30,000 Florida households have installed solar this year.
In the last two years, 1.4 million American households have used federal incentives to install solar and lower their energy costs.
“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. “Demand for solar remains robust, and annual installation forecasts would be higher if not for limitations the industry faces, including those related to interconnection, labor availability, supply constraints, and policy.”
Total solar deployment in 2024 is again expected to exceed 40 GW, followed by annual installation volumes of at least 43 GW for the remainder of the decade.
News item from SEIA
The growth is exponential. More solar panels and more batteries will be installed every subsequent year. In 5 years, fossil fuel power will decrease to 10% of the supply.