U.S. expected to add record 32 GW solar capacity in 2023
- September 13, 2023
- Posted by: Quatro Strategies
- Categories: ESG & Renewable Energy, Sanctions & Regulation, United States
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.
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.
Read more insights
India’s LNG demand set to double by 2030 as gas consumption surges
India’s natural gas consumption is projected to rise by 60% between 2023 and 2030, effectively doubling the country’s need for liquefied natural gas (LNG) imports, as domestic production lags behind demand growth, according to the International Energy Agency (IEA). Rapid urbanization and industrial expansion are set to reshape…
Germany turns to a €30 billion derisking machine to prove it can still invest
Germany has now put a concrete vehicle behind its broader “deliver, don’t just announce” investment narrative: the federal government has launched the €30 billion Deutschlandfonds, a KfW-run program designed to mobilize private capital into projects that Berlin regards as central to restoring competitiveness after several years of near-stagnation.
The fund is structured explicitly as a de-risking platform, using guarantees, loans, and selective equity participation, rather than as a classic state spending pot, with KfW indicating that newly authorized guarantees account for the overwhelming majority of the envelope. The government’s stated objective is to use this as “seed” support that catalyzes roughly €130 billion of additional private investment.
U.S.-Kazakh venture fast-tracks allied supply of tungsten
Washington and Astana are turning a long-overlooked corner of Central Asia into a test case for allied critical-minerals strategy. Under a deal the Trump administration plans to unveil, Cove Capital will take a 70% stake alongside Kazakhstan’s state miner Tau-Ken Samruk to develop the Northern Katpar and Upper Kairakty tungsten deposits, with project costs estimated at roughly $1.1 billion and a U.S. EXIM Bank letter of interest for up to $900 million in financing.
The joint venture will control sales and has pledged to prioritize U.S. government and American commercial needs, a notable line given that the United States hasn’t mined tungsten since 2015 and depends heavily on Chinese supply.