The solar industry reached an unprecedented milestone in 2024. According to the U.S. Solar Market Insight 2024 Year in Review report by the Solar Energy Industries Association (SEIA) and Wood Mackenzie, the United States added 50 gigawatts (GW) of new solar capacity in 2024. This is the largest amount of new capacity added to the power grid by any energy technology in over 20 years. For businesses already using solar power or considering an installation, this surge in new solar capacity 2024 signals significant opportunities and challenges.

The report highlights that solar and energy storage systems accounted for 84% of all new electricity generation added to the grid last year. This shows how rapidly the U.S. solar market is growing and how central solar power has become in the nation’s energy strategy. For businesses, this means an increasingly reliable and competitive energy source that can help cut long-term energy costs and contribute to sustainability goals.

A key part of this growth story is the resurgence of domestic solar manufacturing. In 2024, U.S. factories tripled their solar module production. Solar cell manufacturing also restarted, strengthening America’s energy supply chain. For businesses looking to invest in solar installations, this domestic manufacturing boom could result in faster project timelines, greater availability of panels and components, and more stable pricing as reliance on foreign supply chains decreases.

However, the report also notes that the growth of the solar energy market depends heavily on supportive government policies. Changes in federal tax credits, permitting rules, or supply chain policies could disrupt the market. The report’s low-case scenario predicts a decline of 130 GW in solar deployment over the next decade, representing a potential loss of $250 billion in investment. This would have serious consequences for businesses relying on affordable electricity and for industries planning to expand in regions with growing power demands.

The impact is expected to be particularly large in states like Texas, Indiana, and Florida, among the fastest-growing solar states. Texas alone could miss out on over $50 billion in solar investments over the next ten years if current policies are weakened. This serves as a warning for business owners and commercial developers who are making long-term decisions around energy costs and infrastructure.

Utility-scale solar projects saw a 33% year-over-year increase in 2024, reaching 41.4 GW of installed capacity. Commercial and community solar projects also hit record highs, growing by 8% and 35%, respectively. While the residential solar market slowed due to higher interest rates and policy changes, forecasts suggest it will rebound in the coming years. This rebound could open new opportunities for property owners, developers, and small businesses to invest in rooftop solar installations.

Overall, the record-breaking new solar capacity 2024 demonstrates that solar energy trends are pointing toward greater adoption, technological innovation, and more stable domestic manufacturing. For businesses, this is an encouraging sign of a robust and growing market — but one that still requires attention to policy developments and market shifts that could impact future costs and availability.

Click here to read the full article, originally published March 11, 2025, by SEIA.