The U.S. solar industry has hit a new milestone in 2024. According to a recently released Solar Energy Industries Association (SEIA) and Wood Mackenzie report, U.S. Solar Market Insight 2024 Year in Review, the market set yet another record with nearly 50 gigawatts (GWdc) of capacity installed, marking a 21% increase from 2023. This rapid expansion reflects the growing affordability and efficiency of solar energy, which continues to lead the charge in America’s transition to clean power.
Solar: The Leading Source of New Energy in the U.S.
Solar accounted for 66% of all new electricity-generating capacity added to the grid in 2024. As affordability and scalability continue to improve, solar is emerging as the go-to solution for powering U.S. industries, businesses, and communities.
Unprecedented Growth in U.S. Solar Manufacturing
With surging demand for clean energy, domestic solar manufacturing is growing at an unprecedented rate. In 2024, U.S. module production skyrocketed by 190% year over year. It rose from 14.5 GW at the end of 2023 to 42.1 GW by the end of 2024, surpassing 50 GW in early 2025.
The growing reliance on American-made solar components is strengthening supply chains, boosting local economies, and ensuring a more resilient energy future.
What’s Fueling the Solar Boom?
Economics are driving the increase in solar electricity generation.
- Economic Competitiveness – With lower costs and quicker deployment, solar is a clear choice for companies and utilities looking to meet rising energy demands.
- Corporate Adoption – Major companies like Meta, Google, and Amazon have driven a significant increase in solar adoption.
- Legislative Support – Federal policies, such as the Inflation Reduction Act (IRA), provide tax incentives and funding for domestic manufacturing. Additionally, state and local utility incentives continue to enhance the project returns on investment (ROI), fueling investment and making solar more affordable than ever.
Commercial and Community Solar Set New Records
Beyond large-scale projects, commercial, industrial, and community solar are thriving.
- Commercial solar set a record, adding 2.1 GWdc in 2024—an 8% increase over 2023, with California, Illinois, New York, and Maine leading the charge in installed capacity.
- Community solar also set a record, installing 1.7 GWdc—a 35% increase over 2023. New York, Maine, and Illinois lead this remarkable expansion, with New York alone reaching 861 MWdc—a 66% increase from the previous year.
The future for commercial solar is positive with growing electricity demand from Artificial Intelligence (AI) electricity needs, data centers, and grid electrification efforts positioning solar for sustained long-term growth.
A Future Powered by Solar
The outlook for solar remains bright. Projections indicate that by 2035, U.S. solar capacity will more than triple. Solar is no longer just an alternative energy source. With increased efficiencies in utility-scale solar and larger commercial and industrial (C&I) projects, solar generation has become a significant part of America’s power grid.
From financial incentives to environmental benefits, solar energy offers many advantages that positively impact our lives and communities. Driven by economic benefits, corporate adoption with quick return-on-investment periods, and domestic manufacturing expansion, the U.S. solar industry is set to power our clean energy future for decades to come.
Solar can financially benefit your business or organization. Incentives can maximize investment returns and provide budget stability with onsite solar energy generation. Lower electricity expenses combined with reduced tax payments create a financial shift that positively impacts a business’s cash flow and profitability. Core Development Group has over a decade of experience helping businesses achieve these cost savings. Reach out to us to discover more.
