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

Germany passed bill to make energy saving compulsory for all sectors

Germany has taken a significant step forward in its efforts to combat climate change and reduce dependency on fossil fuels by passing a comprehensive Energy Efficiency Act. The legislation, introduced by the Greens-led economy ministry, makes energy-saving measures compulsory across all sectors of the economy.

Intel, Israel’s Tower Semiconductor enter into strategic partnership following failed merger

Intel and Tower Semiconductor have entered into a strategic partnership, following the termination of their proposed $5.4 billion merger due to regulatory challenges. Under this new agreement, Tower Semiconductor will invest $300 million in Intel’s manufacturing facility located in New Mexico. In return, Tower Semiconductor will acquire and own equipment and fixed assets to be deployed at this facility.

SQM awarded environmental certificate for Chile lithium mine

SQM, a major lithium producer, has announced that its operations in the Salar de Atacama salt flat in Chile have received IRMA (Initiative for Responsible Mining Assurance) certification. This certification measures the environmental and social performance of mine sites based on rigorous standards set by the IRMA.

Stay informed