U.S. Solar Industry in Q1 2023: Record Growth and a Promising Future
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Written by: Tom
The U.S. solar industry began 2023 on an exceptionally high note, registering impressive growth that set records in Q1. Based on the latest U.S. Solar Market Insight Q2 2023 report by the Solar Energy Industries Association(SEIA) and Wood Mackenzie, the solar industry installed a remarkable 6.1 gigawatts(GW) of solar capacity in Q1 2023, marking a 47% increase from Q1 2022. This growth signifies the strongest start to a year in the history of U.S. solar power.
What fueled this solar surge? The answer lies in the long-awaited completion of utility-scale solar projects. In Q1 2023, utility-scale solar installations soared by 66% compared to Q1 2022. Yet, this was not the only segment experiencing growth - every sector, bar community solar, broke first-quarter records. If not for heavy rainfall delaying installations, the residential segment could have set an all-time quarterly record.
Despite facing supply chain challenges on a global scale, the solar industry remains robust. With module shipments finally reaching ports, the availability of equipment is looking up, hinting at an acceleration of pipeline projects.
The Q1 2023 performance of the solar sector has had a profound impact on the broader energy landscape. Solar photovoltaics(PV) constituted a massive 54% of all new electricity-generating capacity additions in Q1 2023. This statistic underscores solar energy's pivotal role in the U.S. energy market.
The future of U.S. solar energy looks bright. The Solar Market Insight report forecasts that the solar market will triple in size over the next five years, estimating a total installed solar capacity of 378 GW by 2028. This forecast is driven by the robust Q1 figures and an expected surge in demand prompted by the Inflation Reduction Act(IRA).
Solar energy is no longer a peripheral player in the energy sector – it's a powerhouse driving the shift toward a sustainable, renewable future. As the industry continues to grow, we anticipate more record-breaking performances and milestones, and a transformation in the way we produce and use energy.
Keep an eye on our blog for further updates on the bright future of the U.S. solar industry, as we track its progress and its profound impact on our energy landscape.
20+ years in finance, with a passion for solar, home improvement, and state energy. Deeply rooted in the evolving capital market landscape, I'm all about building trust, brand, and tech-forward solutions. Let's connect!