The US solar industry grew 43% and installed a record 19GW (direct current) of capacity in 2020, according to latest analysis from Wood Mackenzie and the Solar Energy Industries Association.
New capacity additions in 2020 breaks the US solar market’s previous record of 15.1GW (dc) set in 2016.
The ‘U.S. Solar Market Insight 2020 Year-in-Review’ report found that for the second year in a row, solar led all technologies in new electric-generating capacity added, accounting for 43%.
California, Texas and Florida are the top three states for annual solar capacity additions for the second straight year and Virginia joins them as a fourth state installing over 1GW (dc) of solar PV.
In 2020, 27 states installed over 100MW (dc) of new solar capacity, a new record.
Wood Mackenzie’s 10-year forecast predicts the US is on track to install a cumulative 324GW (dc) of new capacity to reach a total of 419GW (dc) over the next decade.
“After a slowdown in Q2 due to the pandemic, the solar industry innovated and came roaring back to continue our trajectory as America’s leading source of new energy,” said SEIA president and CEO Abigail Ross Hopper.
“The forecast shows that by 2030, the equivalent of one in eight American homes will have solar, but we still have a long way to go if we want to reach our goals in the Solar+ Decade.
“This report makes it clear that smart policies work. The action we take now will determine the pace of our growth and whether we use solar to fuel our economy and meet this climate moment.”
The 8GW (dc) of new installations in Q4 2020 marks the largest quarter in US solar history, said Wood Mackenzie.
Wood Mackenzie senior analyst Michelle Davis added: “The recent two-year extension of the investment tax credit (ITC) will drive greater solar adoption through 2025.
“Compelling economics for distributed and utility-scale solar along with decarbonisation commitments from numerous stakeholders will result in a landmark installation rate of over 50GW (dc) by the end of the decade.”