The US installed a record-breaking 32GW of solar in 2023, during the first full year of the Inflation Reduction Act.
The utility-scale sector alone added 22.5GW of new capacity, while nearly 800,000 Americans added solar to their homes, according to the US Solar Market Insight 2023 Year-in-Review released by the Solar Energy Industries Association (SEIA) and Wood Mackenzie.
The 2023 installation figure of 32GW marked a 37% increase from the previous record set in 2021 and a 51% increase from 2022.
It also marks the first time in 80 years that a renewable electricity source has accounted for over 50% of annual capacity additions.
Every solar market segment saw year-over-year growth in 2023, bringing total installed solar capacity in the United States to 177GW.
“If we stay the course with our federal clean energy policies, total solar deployment will quadruple over the next 10 years,” said SEIA president and CEO Abigail Ross Hopper.
“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.”
Total US solar capacity is expected to grow to 673GW by 2034, enough to power more than 100 million homes.
The report includes forecast scenarios that show how policy and economic factors could impact the solar market.
Michelle Davis, head of global solar at Wood Mackenzie and lead author of the report, said: “A high case for US solar with increased supply chain stability, more tax credit financing, and lower interest rates would increase our outlook 17%.
“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 US solar industry.”