WoodMac – US Solar Market Insight, 2Q 2024

The US solar market had a record first quarter in 2024, installing 11.8 GWdc of capacity, the second-largest quarter in history. Solar accounted for 75% of all new electricity-generating capacity added to the grid. Domestic module manufacturing capacity increased significantly. Florida and Texas were the top states for installations, mostly in utility-scale projects. Residential installations decreased, influenced by California's NEM 2.0 projects. The commercial and community solar segments also saw declines, while the utility-scale segment broke records with 9.8 GWdc installed in Q1. The industry is adjusting to policy changes, including tariffs on imports. The five-year outlook predicts consistent annual installations of around 40 GWdc, with flat growth in 2024 and 2025, and single-digit growth in the following years. Labor availability, equipment constraints, and trade policy uncertainty are hindering further growth. Residential and commercial solar are expected to see growth, while community solar will decline and utility-scale solar will have minimal growth.