How will America will meet the energy demands for a growing manufacturing base, explosive growth in data-related technologies, including artificial intelligence, and continued electrification? Solar and storage may be the most responsive energy source to meet future energy production.
According to the latest analysis by Wood Mackenzie and the Solar Energy Industries Association, in 2024, solar provided 66% of all new capacity to generate electricity for the U.S. power grid.
Solar does not typically require significant procurement timeline and permitting approvals required of new fossil fuel or nuclear projects. Additionally, current incentives attract investment at the utility and commercial scale. Commercial solar, which increases capacity while using commercial investment, is still on a path to an average eight percent growth annually.
The Wood Mackenzie report tallied up nearly 50 gigawatts (GW) of new solar capacity installed in the United States in 2024. This is up 21% from the prior year. Even with an estimated slowdown of solar installations in the next couple of years, the long-range forecast is for continued steady solar growth, with large, utility-scale and community solar projects projected to continue their upward long-term trajectory.
Residential solar has seen a recent slowdown in 2024, not because of the technology, but because of other factors. WM says in its summary, “This was the segment’s lowest year of installed capacity since 2021, contributing to and impacted by company bankruptcies, sustained high interest rates and consumer hesitancy ahead of the 2024 election.” Nonetheless, WM projects steady growth in the number of homes turning to solar in future years for a variety of reasons.
Regional variations are wide when it comes to how much solar is being installed. Texas tops the list of 52 states and districts. Tennessee ranks 50th out of 52, while Kentucky ranks 23rd.
The WM report notes that while the new federal administration has created some uncertainty about federal incentives, “State-level incentives and corporate demand will gain more relevance and drive solar development, potentially mitigating the impact of federal mandates.”
Anne Brock is marketing coordinator for Solar Alliance, which designs and manages solar installation projects for large manufacturers and small businesses. She can be reached at abrock@solaralliance.com or 865-221-8349.
