US Solar Installations Pass 100 GW Milestone in Q1 2024

The first quarter of 2024 was a milestone for the U.S. solar industry, with installations up 21% year over year, according to S&P Global Commodity Insights. That growth pushed the country’s total solar capacity past 100 GW.

That’s evidence of accelerating renewable energy adoption, driven by favorable policy and market dynamics. Developers installed 3,379 MW of utility-scale solar during the period, bringing total solar capacity to an impressive 100,883 MW, according to S&P Global Market Intelligence.

What Makes Solar Energy Shine Brighter

The increase in solar installations can be largely attributed to the Inflation Reduction Act (IRA) and its associated incentives. These incentives have bolstered the solar industry by allowing companies to financially benefit and invest in solar infrastructure.

U.S. Energy Secretary Jennifer Granholm recently noted that wind and solar power could surpass coal production for the first time in U.S. history. She emphasized the ongoing trend toward cleaner energy sources, with the goal of achieving 80% clean energy on the path to 100% clean electricity by 2035.

Solar energy is the leader in the energy market, with a connection capacity of around 56 GW in 2024.

Sam Huntington, director of North America energy and renewables analysis at S&P Global Commodity Insights, highlighted the solar sector’s solid growth trajectory, saying:

“In many ways, solar is at the (absolute) top, and we think it will continue at that pace. Solar will do most of the heavy lifting for the next seven years and will continue to do so.”

The Solar Energy Industry Association (SEIA) reports that there are currently 5 million solar projects in the U.S., including both utility-scale and distributed solar installations.

• In the long run, the American solar industry is replacing 198 million tons of carbon dioxide per year. This is equivalent to closing 53 coal fired power plants. Interestingly, the amount of CO2 emissions reduced (22 billion gallons of gas) could be used to power a trip to the sun and back.

SEIA forecasts that the number of solar installations will double from 5 million to 10 million by 2030 and triple by 2034. This rapid expansion underscores the growing acceptance and integration of solar energy across various economic sectors.

Project developers have ambitious plans for 2024, with the goal of adding an additional 54,484 MW of new solar capacity. This plan includes 4,626 MW of announced projects, 19,278 MW in early development, 3,578 MW in advanced development, and a significant 27,002 MW already under construction.

Overall, there is 228,197 MW of additional solar capacity in various stages of development, with completion expected in 2028, according to S&P Global.

Project Development, Key Projects and Regional Insights

Understanding the stages of project development is key to understanding the scale and progress of solar installations. S&P Global Market Intelligence classifies projects as under construction after construction has begun, excluding site preparation.

In order for a project to be implemented in the advanced development phase, it must meet at least two of the following criteria:

• securing financing,
• signing electricity purchase agreements,
• obtaining necessary permits,
• securing equipment or hiring a contractor on board.

The early stage of project implementation begins with the permitting process, and announced projects are placed in call queues with accompanying public announcements or permitting activities.

In the first quarter of 2024, ten major solar projects were completed, totaling 1,912 MW, with Texas leading the way. Notable among them were IP Lumina I Solar Project (Jade Solar) and IP Lumina II Solar Project (Andromeda Solar), which added about 627 MW of solar capacity.

The projects, owned by Intersect Power LLC, secured renewable energy loans through agreements with two undisclosed companies.

Another remarkable solar project is the California Valley Solar Ranch (CVSR), located in San Luis Obispo County, California. It is one of the most ambitious solar initiatives to date. Owned by NRG Energy and operated by SunPower, a leading developer of utility-scale solar projects, it boasts the capacity to produce 580 MW of power, demonstrating the considerable scalability of solar projects.

Nevada’s contribution to the solar boom, the Copper Mountain Solar Facility developed by Sempra Generation, has steadily increased its capacity to 802 MW. Its continued expansion demonstrates the potential for solar projects to efficiently meet growing energy demands.

Future prospects for solar energy

The U.S. solar industry is poised for continued growth, fueled by strong policy support, technological advances and growing market demand. As the country approaches its renewable energy goals, solar will play an increasingly large role in the energy mix. The current trajectory suggests a bright future for solar, with significant capacity growth expected in the coming years.

Based on new solar projects that will be launched this year, U.S. Energy Information Administration (EIA) predicts significant growth in solar power generation. Specifically, the EIA predicts a 75% increase from 163 billion kilowatt-hours (kWh) in 2023 to 286 billion kWh by 2025.

In addition, the planned solar projects could significantly increase the solar capacity used by the country’s energy sector. Specifically, capacity could increase by 38% to 131 GW by the end of 2024. This expansion reflects the growing investment and development of solar energy infrastructure across the United States.

Corporate America is further driving the bright future of solar energy, with the EIA forecasts below. They are supporting the production of 100+ gigawatts (GW) of solar module manufacturing capacity.

With these achievements, solar energy continues to play a key role in diversifying the country’s energy portfolio and reducing carbon emissions.