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

Japan reembraces LNG in strategic shift to meet surging AI power demand

Japan is emerging once again as a prime destination for long-term liquefied natural gas (LNG) deals, spurred by a confluence of strategic, technological, and economic factors. As China’s LNG imports stagnate in 2024, Japanese buyers are returning to the market with renewed urgency, reflecting a major pivot in the nation’s approach to energy security and transition planning.

After more than a decade of declining LNG imports — driven by nuclear restarts post-Fukushima and an expanding renewables sector — Japan is now facing mounting energy demands, especially from a fast-growing network of data centers powered by artificial intelligence. At the same time, rising costs and slower-than-expected development of alternative fuels such as hydrogen and ammonia are reinforcing LNG’s role as a dependable and immediate transition fuel.

Poland approves construction of 24 small modular nuclear reactor units

Poland has taken a significant step in its commitment to nuclear power by granting approval for the construction of 24 small modular reactor (SMR) units across six sites. This decision aligns with Poland’s broader strategy to reduce its dependence on fossil fuels and addresses challenges related…

EU’s €150 billion SAFE fund aims to build continent’s arsenal

In a bold move to reinforce Europe’s military capabilities and reduce strategic dependence on the United States, European Union ambassadors approved the creation of a new €150 billion defense loan facility on Wednesday. The initiative, dubbed Security Action for Europe (SAFE), is being fast-tracked amid rising anxiety over Russia’s military posture and growing doubts about Washington’s long-term security commitment under President Donald Trump.

Proposed by the European Commission in March, SAFE marks the bloc’s most ambitious defense industrial initiative to date. It comes as European leaders face an increasingly hostile Russia, whose full-scale invasion of Ukraine in 2022 shattered assumptions about European security. Equally unsettling is Trump’s America First doctrine, which many EU capitals fear could lead to a partial or total U.S. military disengagement from Europe in a future crisis.

Stay informed

error: Content is protected !!