TL/DR –
The U.S. is flexing its solar muscles thanks to Biden’s Inflation Reduction Act, quadrupling our solar panel production in just two years. But while we’re almost keeping pace with our solar appetite, we’re still stuck relying on China for those solar wafers and cells. Keep your fingers crossed, folks — if Hanwha Qcells comes through with their Georgia plant, we might finally give China a run for their solar money.
The U.S. Solar Boom: What’s Happening?
The U.S. solar industry is seeing massive growth. Since the Inflation Reduction Act (IRA) was passed, domestic solar production has nearly quadrupled. According to the latest Solar Market Insight report by the Solar Energy Industries Association and Wood Mackenzie, the U.S. now produces over 31 gigawatts of solar modules, up from just 8.3 gigawatts in August 2021. Thanks to the IRA, the U.S. installed 32.4 gigawatts of solar in 2023, and that number is expected to rise. This growth is helping the U.S. reduce its reliance on China for solar panels. However, the country still depends on international suppliers for key parts of the supply chain, like solar wafers, which transform sunlight into energy.
What’s Next for U.S. Solar Manufacturing?
While the U.S. is making strides, the supply chain still relies heavily on overseas production, especially for photovoltaic cells. But change is coming. In early 2024, Hanwha Qcells will start producing these essential components in Georgia, a huge step toward U.S. solar independence. Meanwhile, China remains the leading global supplier.
New Solar Factories Are Popping Up
Solar manufacturing in the U.S. continues to grow, with new factories like Qcells and Sirius PV in Georgia and Meyer Burger in Arizona ramping up production. More than 30 companies have announced plans to expand U.S. operations since the IRA was signed. These developments prove that incentives, like those in the IRA, work better than imposing tariffs on Chinese goods. With this momentum, the U.S. could soon become a net exporter of solar panels. If all planned expansions happen, domestic module capacity could reach 53.9 gigawatts by 2024 and 139.5 gigawatts by 2027.
The Global Picture
Despite U.S. growth, China is still miles ahead. By the end of 2023, China’s solar production capacity hit over a terawatt—more than 25 times America’s current output. Globally, solar installations hit 428 gigawatts in 2023, and nearly 600 gigawatts are expected by the end of this year. However, U.S. solar manufacturing is not without risks. Challenges like equipment shortages, labor issues, and potential shifts in energy policy under future administrations could impact this booming industry.
