The US is on track for another record-breaking year for solar, with over 32 gigawatts (GW) of utility-scale installations expected in 2024, according to the inaugural Solar Market Monitor from the American Clean Power Association (ACP) and S&P Global Commodity Insights.
This surge comes off the back of a record-setting 2023 and is largely due to an anti-circumvention tariff moratorium set by President Joe Biden in 2022, which required imported solar modules to be operational by the end of 2024.
The new biannual report, the Solar Market Monitor, provides a snapshot of where the US solar market is headed. Despite some short-term dips, the growth trajectory looks solid for the rest of the decade. The report forecasts a 6.6% compound annual growth rate from 2025 to 2030, bringing the US to 37 GW of new solar installations annually by 2030.
This year has been extraordinary for the solar industry, thanks to the expected rush to meet the tariff moratorium’s deadline, which led to the projected installation spike. That frenzy will be followed by a slight dip in 2025, with installations anticipated to be about 16% lower compared to 2024. However, the market is expected to bounce back, with steady growth throughout the decade.
Capital costs for solar projects are also expected to keep dropping. By 2035, costs are projected to be 14% lower, driven mainly by declining solar module prices.
And, while the Trump administration and the new Republican-majority Congress are expected to revisit parts of the Inflation Reduction Act (IRA), it’s unlikely that the IRA will be entirely dismantled. That means the foundation for growth should remain intact.
John Hensley, senior vice president of policy & market analysis at ACP, said, “This inaugural report highlights how solar has solidified itself as a clean and cost-competitive energy resource for the US. Moving forward, this resource will help the industry navigate the dynamic US solar marketplace.”
Read more: Renewables powered 24% of US electricity in first 3 quarters of 2024
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