News40% increase in the deployment of solar power in the United States, and it remains the most cost-effective solution available
June 1, 2023
The U.S. solar industry is projected to expand in 2023, due to improved supply chains and the Inflation Reduction Act (IRA).
Photo by Unsplash
- According to the International Energy Agency (IEA), solar is expected to remain the world's leading source of renewable capacity through 2024, with approximately 65% of growth coming from distributed applications including residential and commercial systems.
- Electricity generation costs for solar are expected to decline by 2024 but will likely remain 10-15% higher than pre-Covid levels outside China due to market conditions; IEA states that solar PV and onshore wind remain lowest cost options for new power generation in many countries.
- Manufacturing capacity is anticipated to reach 1TW annually by the end of 2024, sufficient to meet demand under IEA's Net Zero Emissions by 2050 Scenario; PV manufacturing project announcements in the U.S. have doubled since December 2020, further diversifying supply chains.
- Distributed solar generation is expected to contribute 8GW per year by 2024 due to policy support which may be counteracted partially by ratemaking changes in California; the IRA act will become evident in 2025 with its Production Tax Credit eligibility for PV projects.
