Source from Solar Energy Industries Association
The US solar industry installed nearly 50 GWdc of new capacity in 2024, marking a 21% increase from the previous year and accounting for 66% of all new power generation added nationwide. This milestone highlights the sector’s rapid expansion, though challenges remain in some segments.
Utility-Scale Solar Leads Growth, While Residential Installations Decline
Utility-scale solar emerged as the dominant force behind the industry’s record-breaking year, contributing over 16 GWdc in the fourth quarter alone. High module inventory levels played a key role in driving deployment.
Commercial solar also set an annual record, with 2,118 MWdc installed in 2024, an 8% year-over-year growth. States like California, Illinois, and Maine saw strong activity due to project deadlines under net metering policies. Meanwhile, community solar had its most successful year, reaching 1,745 MWdc, with record capacity additions in New York, Maine, and Illinois.
However, residential solar faced a setback, experiencing a 31% decline compared to 2023. The downturn was largely attributed to California’s policy changes under NEM 3.0 and high interest rates nationwide, leading to the lowest residential solar growth since 2021.
Industry Outlook: Strong Demand with Emerging Constraints
2024 was a landmark year for solar, following supply chain stabilization and strong corporate and utility demand, which doubled installations compared to 2022. However, policy uncertainties are expected to balance out this high demand, keeping 2025 installations at levels similar to 2024.
According to industry projections, the US solar sector is expected to add over 375 GWdc by 2035, pushing cumulative capacity past 730 GWdc—a significant increase from 236 GWdc at the end of 2024. Annual installations are forecasted to remain above 43 GWdc through 2035.
Despite this long-term expansion, challenges such as interconnection delays, labor shortages, and increasing market saturation in key states are expected to slow growth. Analysts anticipate a 1% annual contraction over the next decade, following the significant surges seen in 2023 and 2024.
The Path Forward
As the US accelerates its clean energy transition, solar remains the nation’s preferred generation source. While near-term growth is expected to hold steady, industry stakeholders will need to address grid infrastructure, workforce expansion, and evolving policies to maintain long-term momentum.
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