Nearly 50 GW of New Solar Generating Capacity Added in the U.S. in 2024
A recent report by the Business Council for Sustainable Energy and BloombergNEF highlights the market and policy trends affecting the U.S. solar industry. According to the 2025 Sustainable Energy in America Factbook, nearly 50 GW of new solar generating capacity was connected to the U.S. power grid in 2024.
This record-breaking addition of 49 GW has significantly contributed to meeting increasing energy demands and replacing the capacity of decommissioned thermal assets. Sean Gallagher, the Senior Vice President of Policy at the Solar Energy Industry Association, stated, “America’s solar manufacturers can now produce enough modules to meet all demand in the U.S.”
In total, approximately 39.6 GW of utility-scale solar was deployed last year, marking a 31.4% increase in generation from these facilities. This surge represents the largest year-over-year growth since 2017. Additionally, close to 10 GW of rooftop solar was added, with Texas emerging as the top market for new utility-scale solar projects.
Despite the growth, the levelized cost of energy for fixed-axis PV solar increased by 27% to $63/MWh, even with tax credits helping to mitigate rising hardware costs. The report emphasizes that solar remains one of the most affordable sources of new bulk generation, regardless of tax incentives, despite challenges such as supply chain disruptions, high interest rates, and an unclear tariff environment.
Efforts to bring solar module production back onshore are intensifying. In 2024, approximately $8 billion was invested to initiate new manufacturing for solar, wind, battery, and electrolyzer technologies. The report attributes this over $7 billion increase from 2022 levels to the implementation of the Inflation Reduction Act (IRA), factory commissions, subsidies, import tariffs, and domestic content regulations. However, the authors caution that the U.S. manufacturing pipeline is at risk, warning, “Despite the flurry of activity in the last two and a half years, there is no guarantee that all of the announcements will lead to factories being commissioned.”
New manufacturing announcements and investments have been declining; of the 264 manufacturing investments made since the IRA’s passage, fewer than a quarter were announced in 2024. As production facilities ramp up, U.S. solar cell imports surged to $1.5 billion in the first nine months of 2024, representing a 154% increase compared to the same period in 2023. Changes in tariffs on cells and modules from Cambodia, Malaysia, Thailand, and Vietnam could have significant impacts, prompting some manufacturers to shift their sourcing to countries such as Laos and Indonesia ahead of potential tariff implementation.
Additionally, over 30 GW of imported module inventory from CMTV that was not installed before December 2024 may face tariffs for future use. Interconnection remains a crucial obstacle for new projects, as many are stuck in a backlog. Although new interconnection applications have slowed, approximately 93 GW of solar and 139 GW of storage capacity sought grid connection in 2024.
The factbook also reports that 2024 experienced the highest annual capacity additions for energy generation and storage in over two decades, with renewable power sources leading the way in new additions.
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