Illustration: Gabriella Turrisi/Axios
America has dramatically increased its solar manufacturing.
Why it matters: Through incentives in the Inflation Reduction Act, the Biden administration reinvigorated the domestic solar supply chain.
Driving the news: The U.S. increased solar panel production capacity in the first quarter to 26.6 GW, a 71% jump from the previous quarter, according to a new report from Wood Mackenzie and the Solar Energy Industries Association. First quarter production soared 203% year-over-year.
- The rise represented the largest quarter of solar manufacturing growth in American history. Production capacity is determined by the amount of solar modules that factories could produce if fully operating.
- The report says that once America's solar factories are running at full tilt, it would be enough to supply 70% of the entire demand for solar panels in the U.S.
- Clean energy policies in the IRA were the driving force behind the majority of this investment, said the report.
Meanwhile, the U.S. installed a near-record 11.8 GW of solar panels, bringing total deployed solar capacity to 200 GW in the U.S., says the report. The bulk of those installations were utility-scale solar projects.
Yes, but: The report notes that the rooftop residential solar market experienced its worst quarter in two years largely due to the policy changes in California, which has slashed the incentives homeowners can get for solar panels.
- The commercial and community solar markets remained steady year-over-year.
The big picture: Solar remains the most important technology to decarbonize the power grid.
- Solar accounted for 75% of all new electricity-generating capacity added to the U.S. grid in Q1 2024, says the report.
Editor's note: This story was updated with the first quarter year-over-year figure in paragraph three.
