US solar sector tops 31 GW of module manufacturing in Q2

The US now has more than 31 GW of solar module manufacturing capacity, almost four times more than before the Inflation Reduction Act (IRA) was passed in 2022, according to a report today by the Solar Energy Industries Association (SEIA) and Wood Mackenzie.

In the second quarter of 2024, the US solar sector installed 9.4 GW DC of power generation capacity, more than in any second quarter so far, the US Solar Market Insight Q3 2024 report showed. A total of 75 GW of solar was added since the IRA was signed into law.

However, the solar industry currently presents many challenges to navigate, said Michelle Davis, head of global solar at Wood Mackenzie and lead author of the report.

“The solar industry had a great second quarter, mostly due to growth in the utility-scale segment,” Davis said. “But future solar growth is being hindered by broader power sector challenges – interconnection backlogs, electrical equipment shortages, and constraints on labor availability. The industry also faces uncertainty related to newly proposed tariffs and the presidential election,” she added.

The report projects that annual solar installations will decline by 4% in 2024 and grow at 4% on average over the 2025-2029 period.

In the second quarter, the utility-scale segment installed 7.6 GW, up 59% year-over-year, although 23% below the first quarter of 2024, when there was a flurry of previously delayed projects.

The residential segment dropped by 10% quarter-over-quarter and 37% year-over-year to 1.1 GW, due to California’s policy changes and high interest rates.

The commercial and community solar segments installed 427 MW and 270 MW, respectively.

Module manufacturing capacity expanded by over 10 GW to 31.3 GW

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