The United States is on the brink of a solar power surge as industry reports predict a staggering 32 gigawatts (GW) of solar installations in 2024. This forecast, shared by the American Clean Power Association and S&P Global Commodity Insights, showcases the robust growth of renewable energy in the country.
This new report marks the introductory publication of the biannual Solar Market Monitor, and it details a remarkable 6.6% compound annual growth rate for solar energy from 2025 through the end of the decade. By 2030, the U.S. is expected to reach a milestone of 37 GW in solar projects. Yet, 2025 might bring a short-lived downturn, as installations could decrease by 16% from the anticipated heights of 2024.
The exceptional expansion projected for 2024 is fueled by an impending tariff moratorium deadline. This moratorium, sanctioned by President Biden’s administration in 2022, provides a strategic tax respite for solar energy developers importing less expensive photovoltaic panels from Southeast Asian countries like Cambodia, Malaysia, Thailand, and Vietnam. To benefit, solar projects must be completed before 2025.
Despite the anticipated decline in 2025, the solar sector is expected to rebound strongly in 2026 and continue growing through 2030. This growth may be partially driven by decreasing photovoltaic module costs, potentially cutting project expenses by 16%. Consequently, the levelized cost of energy (LCOE) could decrease from $46 per megawatt-hour (MWh) to $38 MWh by 2030.
Industry stakeholders remain cautiously optimistic about potential shifts under a Trump administration, particularly concerning Biden’s Inflation Reduction Act. Many believe the essential elements of this act will endure, preserving its support for the renewable sector.
John Hensley, a senior vice president at the American Clean Power Association, remarked on the report by saying, “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.”
As these developments unfold, the U.S. solar industry stands poised to cement its role as a pivotal player in the global shift toward cleaner, more sustainable energy sources.
