U.S. solar market saw record 32.4 GW of new electric generating capacity in 2023

Credited in part to the Inflation Reduction Act of 2022, the Solar Energy Industries Association (SEIA) and Wood Mackenzie reported that, in 2023, the United States achieved record deployments of new solar electric generating capacity: 32.4 GW.

It blew the previous record set in 2021 off the map, with a 37 percent increase. It also marked a 51 percent increase over figures from 2022. It also marked the first time any renewable electricity source achieved more than 50 percent of new electricity capacity added to the grid in any given year.

“If we stay the course with our federal clean energy policies, total solar deployment will quadruple over the next ten years,” Abigail Ross Hopper, SEIA president and CEO, said. “The Inflation Reduction Act is supercharging solar deployment and having a material impact on our economy, helping America’s solar module manufacturing base grow 89% in 2023. We must protect and optimize the policies that are driving these investments and creating jobs, and the stakes in the upcoming election couldn’t be higher.”

According to the U.S. Solar Market Insight 2023 Year in Review report, cited above, total U.S. solar capacity is also expected to grow to 673 GW over the next 10 years. For reference, that would be enough to power more than 100 million homes, on average. Forecasts made up a significant portion of the report, showcasing governmental policies or economic factors that could change this growth.

That difference could be significant. In fact, a 200 GW gap existed between the high and low-case forecasts for 2034, affected by everything from the upcoming presidential election to interest rates and supply chain availability.

“A high case for U.S. solar with increased supply chain stability, more tax credit financing, and lower interest rates would increase our outlook 17%,” Michelle Davis, head of global solar at Wood Mackenzie and lead author of the report, said. “A low case with supply chain constraints, less tax credit financing, and static interest rates would decrease our outlook 24%. Various policy and economic outcomes will have big implications for the U.S. solar industry.”

That means that while every solar market segment saw significant growth in 2023 – with the utility-scale sector alone adding 22.5 GW of new capacity – the picture could pivot based on numerous factors outside the industry’s control. Still, for the moment, Texas in particular has led the nation with new solar installations, at 6.5 GW worth, while California declined, something that new net metering policies are expected to exacerbate this year. At this point, more than half of U.S. states also have at least 1 GW of total installed solar capacity.