U.S. expected to add record 32 GW solar capacity in 2023

The U.S. solar industry is on track to achieve significant growth in 2023, with an expected record addition of 32 gigawatts (GW) of production capacity. This represents a 53% increase over new capacity added in 2022. The growth is attributed to various factors, including investment incentives provided under the Inflation Reduction Act (IRA).

The report, published by the Solar Energy Industries Association (SEIA), also predicts that total operating solar capacity in the U.S. will grow from the current 153 GW to 375 GW by 2028. This growth is expected as supply chain challenges, which were exacerbated by the COVID-19 pandemic and restrictive trade policies, gradually subside.

One significant driver of growth is increased investment in domestic solar manufacturing. If all the plans for new solar module factories materialize, the report suggests that U.S. solar module production could increase tenfold by 2026.

The Inflation Reduction Act, passed in 2022 by the Biden administration, plays a pivotal role in incentivizing the solar industry’s expansion. The IRA allocates approximately $370 billion toward climate change and clean energy initiatives, including incentives aimed at promoting solar and wind power.

The report highlights the positive impact of the IRA on the solar industry, with an increase in announcements for domestic module manufacturing and a wave of optimism within the industry. However, the report also emphasizes the importance of effectively implementing these plans to ensure a stable supply of solar modules.

In February, the Energy Information Administration (EIA) reported that U.S. developers have plans to add 54.5 GW of new electric generating capacity in 2023, with more than 50% of it driven by solar energy sources.

The utility-scale and residential solar markets have been leading the way in new capacity additions, with particular growth in residential solar installations, driven by changes in net metering rules in California.

Florida continues to be a prominent state for solar energy, ranking at the top in the first half of 2023 by installing 2.5 GW of new capacity.

Overall, the U.S. solar industry is experiencing significant expansion, driven by policy incentives, increasing investment in domestic manufacturing, and a growing demand for clean energy sources.

Elevate your business with QU4TRO PRO!

Gain access to comprehensive analysis, in-depth reports and market trends.

Interested in learning more?

Sign up for Top Insights Today

Top Insights Today delivers the latest insights straight to your inbox.

You will get daily industry insights on

Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

U.S. finalizes punitive tariffs on Southeast Asian solar gear

The U.S. International Trade Commission (ITC) has delivered a decisive blow to Southeast Asia’s solar export industry, clearing the final hurdle for sweeping anti-dumping and countervailing duties on solar equipment imported from Cambodia, Malaysia, Thailand, and Vietnam. The ITC’s unanimous ruling on Tuesday concluded that these imports have materially harmed U.S. manufacturers, opening the door for full implementation of punitive tariffs as early as June.

The decision concludes a multi-year trade investigation that was set in motion by a coalition of domestic producers, including Hanwha Q Cells and First Solar Inc., who argued that a wave of low-cost, heavily subsidized imports had undermined the financial viability of U.S.-based production—despite significant federal tax incentives under legislation like the Inflation Reduction Act.

Global platinum deficit widens in 2024 as South Africa and Russia drive supply concerns

The World Platinum Investment Council (WPIC) announced on Monday that the global platinum deficit for 2024 will be more significant than previously anticipated, primarily due to decreased supply from mines in South Africa and Russia. While the deficit is projected to be 476,000 troy ounces, it is smaller than 2023’s…

Trump launches national security probe into U.S. copper imports, hinting at tariffs

President Donald Trump has launched a national security probe into U.S. copper imports, signaling potential new tariffs as part of his broader effort to rebuild domestic production of critical industrial materials. The Commerce Department, led by Secretary Howard Lutnick, will investigate whether foreign copper imports…

Stay informed

error: Content is protected !!