According to the US Solar Market Insight Q2 2024 report, the manufacturing capability of photo voltaic module manufacturing has elevated to greater than 11 GW.
The US Solar Market Insight Q2 2024 report states that 11 GW of latest photo voltaic module manufacturing capability got here on-line within the United States throughout Q1 2024, the most important quarter of photo voltaic manufacturing progress in historical past. America.
The report, launched by the Solar Energy Industries Association (SEIA) and Wood Mackenzie, estimates that the entire US photo voltaic module manufacturing capability now exceeds 26 GW per 12 months.
In addition to photo voltaic manufacturing, the US can also be quickly growing photo voltaic installations. With 11.8 GW of latest photo voltaic capability put in to date by 2024, whole capability now stands at 200 GW within the United States. The utility-scale section alone accounts for practically 10 GW of latest capability additions.
The report reveals that the US added greater than 40 GW of latest photo voltaic capability final 12 months, and Wood Mackenzie now initiatives that the US is heading in the right direction to succeed in the identical objective by 2024.
“This quarter proves that new federal investments in clear power are reinvigorating American manufacturing and strengthening our nation’s power financial system,” stated SEIA president and CEO Abigail Ross. Hopper. “Whether it is a billion-dollar funding in a close-by photo voltaic challenge or a brand new manufacturing plant that employs lots of of native staff, the photo voltaic and storage business energizes communities in each state throughout the nation.”
The report factors to Florida and Texas as leaders in new photo voltaic capability in Q1. Florida put in 2.7 GW in Q1 and Texas 2.6 GW. California, traditionally a photo voltaic chief, fell to 3rd place with 1.4 GW of latest installations; nevertheless, it’s recognized that in 2023, Texas will set up virtually 12 GW, whereas California could have 6.4 GW. New Mexico is one other main market with 686 MW put in in Q1, with Ohio following behind at 546 MW. Leading the way in which are North Dakota, Alabama and Alaska.
“The US photo voltaic business continues to indicate power when it comes to deployment,” stated Michelle Davis, head of worldwide photo voltaic at Wood Mackenzie and lead writer of the report. “At the identical time, the photo voltaic business faces many challenges to its continued progress together with labor availability, excessive voltage gear constraints, and continued commerce coverage uncertainty.”
The residential photo voltaic section has been hit onerous by excessive rates of interest and unsupportive state insurance policies. California, the place essentially the most controversial NEM 3.0 started, skilled its worst quarter in two years. Overall the residential sector put in 1.3 GWdc in Q1, displaying a 25% year-over-year decline and 18% quarter-over-quarter however residential photo voltaic progress is anticipated to be regular.
Commercial photo voltaic reveals 23% progress in 2023 and is anticipated to develop one other 14% in 2024. This sector is considerably inspired by the California initiatives submitted underneath NEM 2.0 which can be nonetheless within the interconnection queue.
Looking at group photo voltaic, installations resulted in 279 MWdc of latest capability in Q1, with New York main the charts at 17% year-over-year in Q1 2024, overlaying at 46% of the nationwide put in capability.
Once once more, California state coverage adjustments are disrupting a once-growing market. As a results of the CPUC’s vote on AB 2316, the report’s authors revised their five-year outlook for California and now count on solely 200 MW relatively than 1.5 GW—an 87% discount. Overall the group photo voltaic market is anticipated to develop 4% by 2024, exceeding 1.3 GWdc in annual capability.
Questions and challenges
Of the various unanswered questions on tariffs on imported photo voltaic modules and different parts, the report stated the tariff improve wouldn’t have a major direct affect on the US photo voltaic business, because the US imports lower than 0.1% from China in the intervening time. .
Going ahead, the report’s five-year outlook expects the US business to put in about 40 GWdc a 12 months over the following 5 years. Trade coverage uncertainty coupled with a scarcity of staff in addition to high-voltage gear, will hold total single-digit progress as much as 2029. The five-year projection, nevertheless, for capability of US photo voltaic to develop to 438 GW by 2029.
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