The US is predicted so as to add a record-setting 33 gigawatts (GW) of photo voltaic capability in 2023, in line with a brand new report, however 2024 will carry challenges to the trade.

The Photo voltaic Power Industries Affiliation (SEIA) and Wooden Mackenzie launched their newest report, “US Photo voltaic Market Perception This autumn 2023,” by which they report that third-quarter (Q3) additions of latest photo voltaic totaled 6.5 gigawatts (GW) – a 35% year-over-year improve – as federal clear power insurance policies start to take maintain.

California and Texas led the US for brand spanking new photo voltaic installations in Q3, and Indiana ranked third with 663 megawatts (MW) of latest capability as a number of massive utility-scale tasks got here on-line. Fourteen states and Puerto Rico put in greater than 100 MW of latest photo voltaic capability in Q3. 

Whereas financial challenges are starting to impression the photo voltaic and storage trade, photo voltaic continues to be anticipated to be the most important supply of producing capability on the US grid by 2050.

SEIA president and CEO Abigail Ross Hopper stated:

Photo voltaic stays the fastest-growing power supply in the US, and regardless of a tough financial setting, this progress is predicted to proceed for years to come back.

To keep up this forecasted progress, we should modernize laws and cut back bureaucratic roadblocks to make it simpler for clear power corporations to take a position capital and create jobs.

The residential photo voltaic section put in a file 210,000 techniques in Q3. Nonetheless, the California Public Utilities Fee’s disastrous resolution to intestine the state’s rooftop photo voltaic incentives –leading to an 80% drop in installations – and elevated US rates of interest are anticipated to result in a quick decline subsequent yr earlier than progress resumes in 2025.

Elevated financing prices, transformer shortages, and interconnection bottlenecks are additionally impacting the utility-scale section, which noticed its lowest degree of latest contracts signed in 1 / 4 since 2018.

Nonetheless, enhancements within the module provide chain have led to a file 12 GW of utility-scale deployment within the first 9 months of 2023.

Photo voltaic accounts for 48% of all new electrical producing capability within the first three quarters of 2023, bringing whole put in photo voltaic capability within the US to 161 GW throughout 4.7 million installations. By 2028, US photo voltaic capability is predicted to achieve 377 GW – sufficient to energy greater than 65 million properties.

Michelle Davis, head of photo voltaic analysis at Wooden Mackenzie and lead creator of the report, stated:

The US photo voltaic trade is on a powerful progress trajectory, with expectations of 55% progress this yr and 10% progress in 2024.  

Development is predicted to be slower beginning in 2026 as varied challenges like interconnection constraints turn into extra acute. It’s essential that the trade proceed to innovate to maximise the worth that photo voltaic brings to an more and more complicated grid.

Interconnection reform, regulatory modernization, and growing storage attachment charges will probably be key instruments.

Electrek’s Take

Photo voltaic breaking capability data in 2023 doesn’t shock me – thanks, Inflation Discount Act – but it surely definitely makes me blissful to listen to it from the SEIA. The photo voltaic trade continues to be going to develop in 2024, simply not as rapidly because it did this yr.

There are loads of transferring components on this revolutionary transition to wash power, and subsequent yr, the trade and its provide chain goes to should recalibrate on some necessary stuff.

There’s nothing it will probably do in regards to the rates of interest, and I don’t know the way California goes to kind out its mess. However there are revolutionary startups arising with higher methods to calibrate the ability on the grid, and people concepts are being launched commercially. As Davis says, interconnection reform and regulation enhancements are wanted to assist ease the clear power bottlenecks. Hopefully these bottleneck points will probably be improved by authorities sooner somewhat than later.

Learn extra: Right here’s what the US must do proper now to improve the grid

Picture: A employee watches the dawn by US Division of Power is licensed below CC-CC0 1.0

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