The “US Solar Market Insight Q4 2024” report, published by the Solar Energy Industries Association (SEIA) and Wood Mackenzie, states that domestic module manufacturing will be able to match the rapid pace of growth in the US solar industry, with cell production also ramping up.
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The pursuit of onshoring the US solar manufacturing supply chain has come with the challenge of imbalanced capacities of domestically made modules, cells, wafers and ingots. But the tide may be turning, according to the “US Solar Market Insight Q4 2024” report by SEIA and Wood Mackenzie.
Domestic module manufacturing capacity increased by more than 9 GW in the third quarter to nearly 40 GW, with five new or expanded factories in Alabama, Florida, Ohio and Texas. The capacity has nearly quintupled since the end of the second quarter of 2022, when it stood at 7 GW just before passage of domestic manufacturing and procurement tax credits in the US Inflation Reduction Act.
At full capacity, the United States can now produce enough solar modules to meet nearly all domestic demand, said SEIA and Wood Mackenzie. Demand is expected to be 40.5 GW (DC) in 2024, followed by average annual volumes of at least 43 GW from 2025-29, according to the report.
However, cell manufacturing has been slower to take hold due to the complex and costly process. According to the report, the first US cell manufacturing facility opened in the third quarter – the first since 2019.
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