USA Solar Panel Market Outlook to 2028

USA Solar Panel Market Overview

The USA solar panel market is growing positively during the years 2018-2023. The Global solar panel market is valued at USD 82 Billion in 2023. The market has seen significant growth over the past five years due to increasing residential and commercial installations, increasing demand for renewable energy sources and government incentives promoting solar energy adoption.

Key players in the USA solar panel market include First Solar, Inc., Sun Power Corporation, Tesla, Inc., and Jinko Solar Holding Co., Ltd. These companies lead in technology innovation, production capacity, and market reach.

First Solar in 2023 about their plan to build a new manufacturing plant in Ohio. This facility is expected to produce an additional 3.3 GW of solar panels annually, making it the largest solar manufacturing plant in the Western Hemisphere. This expansion is aimed at meeting the growing demand for solar energy in the USA and aligns with the country's push towards renewable energy.

USA Solar Panel Current Market Analysis

In 2023, the USA solar market saw a substantial surge in investment, with the industry installing a record 32.4 gigawatts of new capacity, marking a significant 51% increase from the previous year. This remarkable growth underscores the sector's robust investment dynamics and increasing commitment to renewable energy.

The USA solar panel market has a profound impact on both the economy and the environment. In 2023, solar energy contributed to the reduction of 80 million metric tons of carbon dioxide emissions, highlighting its critical role in combating climate change and promoting environmental sustainability.

California continues to lead the USA solar panel market, driven by its favourable climate conditions, robust policy support, and substantial investments in renewable energy infrastructure. In 2023, California installed over 2.5 gigawatts of new solar capacity, reinforcing its position as the leading state in solar energy deployment.

USA Solar Panel Market Segmentation

By Product Type: The USA solar panel market is segmented by product type into monocrystalline, polycrystalline, and thin-film solar panels. In 2023, monocrystalline panels held the largest market share, accounting for almost half of the total market. Their high efficiency and durability make them a preferred choice for both residential and commercial installations.

By End-User: The USA solar panel market is segmented by end-user into residential, commercial, and industrial sectors. The residential sector dominated the market in 2023. The growth in this segment is driven by increasing consumer awareness and favourable government incentives for home solar installations.\

By Region: The USA solar panel market is segmented by region into North, South, East, and West. The West region led the market share in 2023. California's leadership in solar energy and its aggressive renewable energy targets significantly contribute to the region's prominence.

USA Solar Panel Market Competitive Landscape

Company Name

Establishment Year

Headquarters

First Solar

1999

Tempe, Arizona

Sun Power Corporation

1985

San Jose, California

Solar City Corporation

2006

San Mateo, California

Next Era Energy Resources

1985

Juno Beach, Florida

Sunrun Inc.

2007

San Francisco, California

Tesla's Solar Roof Expansion: Tesla expanded its solar roof production in 2024, opening a new manufacturing facility in Texas. This expansion aims to meet growing demand for residential solar solutions and supports Tesla's goal of installing solar roofs on 1 million homes by 2025.

Google's Renewable Energy Pledge: In 2024, Google announced a $1.5 billion investment in renewable energy projects, including solar farms. This investment supports Google's commitment to operating on 100% renewable energy by 2030 and drives further growth in the solar panel market.

Next Era Energy Resources announced acquisition: Next Era Energy Resources announced in 2023 the acquisition of several large-scale solar projects totalling 2 GW across multiple states, including Texas, California, and Florida. These projects are expected to be operational by 2025 and contribute to Next Era's goal of achieving a renewable energy capacity of 30 GW by 2030.

USA Solar Panel Market Analysis

USA Solar Panel Market Growth Drivers

Increased Solar Installations: In 2024, the USA saw a significant increase in solar installations, with over 3 million residential solar systems installed nationwide. This surge is driven by rising energy costs and the push for renewable energy sources. California alone added 1.5 million new solar rooftops in 2024, highlighting the growing consumer shift towards solar energy as a primary power source.

Government Incentives for renewable energy: The extension of the federal tax credit for solar investments in 2024 continues to drive market growth. Homeowners and businesses can claim a 30% tax credit on solar installations, which encourages more investments in solar energy. In 2024, over $3 billion in tax credits were claimed, reflecting the substantial impact of these incentives on market expansion.

Corporate Investment in Solar: Major corporations like Amazon, Google, and Walmart increased their solar investments significantly in 2024. Amazon, for instance, announced plans to install 5 gigawatts of solar capacity on their facilities by 2025. Such corporate initiatives not only boost solar capacity but also inspire other businesses to follow suit, accelerating market growth.

USA Solar Panel Market Challenges

Supply Chain Disruptions: In 2024, the solar panel market faced significant supply chain disruptions due to geopolitical tensions and trade restrictions. These disruptions led to delays in solar panel manufacturing and delivery, impacting the installation schedules and increasing costs for developers and consumers.

Grid Integration Issues: The rapid expansion of solar energy in 2024 highlighted challenges in grid integration. Many states, including Texas and Florida, experienced grid stability issues due to the intermittent nature of solar power. This necessitates substantial investment in grid infrastructure and energy storage solutions to maintain reliable power supply.

Land Availability for Solar Farms: As solar farm projects expanded in 2024, finding suitable land for large-scale installations became increasingly challenging. States like Nevada and Arizona faced land use conflicts, where solar farm projects competed with agricultural and conservation land uses, complicating project approvals and development.

USA Solar Panel Market Government Initiative

Permitting Progress: The Biden-Harris Administration has made significant strides in permitting clean energy projects. For instance, the Department of the Interior (DOI) has permitted more than 25 gigawatts of clean energy projects on public lands, surpassing a major milestone ahead of the 2025 target date. DOI has also approved the nation’s first 10 gigawatts of large-scale offshore wind projects, supporting the President’s goal of deploying 30 gigawatts of offshore wind by 2030.

Solar Energy Technologies Office (SETO) Funding: The U.S. Department of Energy (DOE) Solar Energy Technologies Office (SETO) announced the Small Innovative Projects in Solar (SIPS) 2024 funding opportunity, which will award $6.5 million for seedling R&D projects focusing on innovative and novel ideas in photovoltaics (PV) and concentrating solar-thermal power (CSP).

USDA Funding: The U.S. Department of Agriculture (USDA) is funding more than 700 clean energy projects to lower energy bills, expand access to domestic biofuels, and create jobs and new market opportunities for U.S. farmers, ranchers, and agricultural producers. This funding is part of President Biden’s Inflation Reduction Act and supports projects through the Rural Energy for America Program (REAP) and the Higher Blends Infrastructure Incentive Program (HBIIP).

USA Solar Panel Market Future Outlook

Over the next five years, residential solar adoption in the USA is expected to experience substantial growth. This growth is driven by decreasing costs of solar panels, which in 2024 averaged $2.50 per watt, making solar energy more affordable for a broader range of consumers.

Future Market Trends

Increased Residential Solar Adoption: Over the next five years, residential solar adoption is expected to grow significantly, with an estimated 5 million new installations by 2028. This trend will be driven by decreasing solar panel costs, favorable government incentives, and growing consumer awareness about renewable energy benefits.

Expansion of Solar Storage Solutions: The integration of solar energy storage solutions will expand, with an estimated installation of 50 gigawatt-hours of storage capacity by 2028. This growth will address the intermittency issues of solar power and improve grid reliability, supported by advancements in battery technology and decreasing storage costs.

Corporate Renewable Energy Commitments: Major corporations are projected to further increase their investments in solar energy, with commitments to install an additional 10 gigawatts of solar capacity by 2028. These initiatives will drive market growth and set new benchmarks for corporate sustainability practices.
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