Solar energy continues to grow as more installations take place. A new report from the Solar Energy Industries Association (SEIA) says the US solar energy industry installed 50 gigawatts of direct current capacity in 2024, a 21% increase over 2023.
According to the report, 66% of new electricity-generating capacity came from solar.
Texas, the top oil and gas-producing state, led the nation in solar capacity installation for the second year in a row, with California and Florida rounding out the top three.
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The SEIA expects continual growth in the solar power industry, now that the supply chain impacts of COVID have gone away, and the money provided for alternative energy in the Inflation Reduction Act is getting distributed. According to the association, “Solar remains the generation technology of choice across the United States, as illustrated by the high level of demand in 2024. While 2023 was a year of recovery, 2024 was the year of materialization of the IRA. Solar installations more than doubled in 2024, compared to 2022, as supply chains have become more resilient and interest from utility and corporate offtakers soars. We expect 2025 installations to remain at similar levels to 2024 as policy uncertainty partially offsets high demand. The anticipated boom in data centers, the growing manufacturing base, and wider electrification of the economy could drive electricity demand to increase between 4% and 15% through 2029, depending on the region.”
The SEIA also said that residential solar installations have started to recover. Citing “significant turmoil” in 2023 due to “numerous installer and financier bankruptcies,” residential solar installations increased by 9% in 2024.
One concern the SEIA cites is President Donald Trump’s early executive orders. The report says, “During the first weeks of the new administration, President Trump issued a series of executive orders impacting industries including the energy sector. Several are aimed at promoting fossil fuels and rolling back climate change initiatives.”
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Those executive orders included an energy emergency declaration, a federal land use freeze, a federal funding freeze and new tariffs.
Still, the SEIA remains optimistic about solar power. In a release, SEIA president and CEO Abigail Ross Hopper said, “Solar and storage can be built faster and more affordably than any other technology, ensuring the United States has the power needed to compete in the global economy and meet rising electricity demand.”
She added, “America’s solar and storage industry set historic deployment and manufacturing records in 2024, creating jobs and driving economic growth. It’s critical that lawmakers continue to support an ‘all of the above’ energy strategy that fosters the growth of American energy sources like solar and storage.”
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