US’ solar additions surge to 32.4 GW in 2023

The US added a record 32.4 GW of solar capacity in 2023, up 51% year-over-year and 37% more than the previous record in 2021, according to a report released today by the Solar Energy Industries Association (SEIA) and Wood Mackenzie.

SEIA and Wood Mackenzie already signaled in their report for the third quarter that the US was poised to add record solar capacity in 2023.

“If we stay the course with our federal clean energy policies, total solar deployment will quadruple over the next ten years,” said SEIA president and CEO Abigail Ross Hopper.

The total US solar capacity is expected to grow from 177 GW DC at the end of 2023 to 673 GW DC by 2034 in the base case outlook. However, developments in the supply chain, tax credit financing and interest rate environment can significantly swing the outlook.

In 2023, all segments of the solar market grew compared to 2022. The utility-scale sector added 22.5 GW, marking 77% annual growth and underscoring the impact of supply chain constraints in 2022. More than 10 GW DC was installed in the fourth quarter. Residential solar expanded 12% to 6.8 GWdc, helped by a rush in California to take advantage of more favorable net metering rules before April.

According to the data, solar module manufacturing capacity increased from 8.5 GW to 16.1 GW in 2023. However, the organisations warned that record-low module prices and a difficult economic climate could make it hard for US manufacturers to follow through on announced facilities. In 2023, prices for monofacial and bifacial solar modules dropped 26% and 31%, respectively. At the moment, the US does not have any operational ingot, wafer or cell manufacturing facilities.

SEIA and Wood Mackenzie further said that 53% of all new electric generating capacity added to the grid last year was solar, the first time in 80 years that a renewable electricity source has accounted for more than half of annual capacity additions.