The US photovoltaic industry is expected to continue to maintain growth momentum

The report shows that the US photovoltaic industry is expected to continue its growth momentum in 2024,with photovoltaic power generation accounting for over 50%of the newly added grid installed capacity last year.

According to a report released by Wood Mackenzie and the American Photovoltaic Industry Association on Wednesday,the US photovoltaic industry is expected to continue its growth momentum in 2024;Last year,photovoltaic power generation accounted for over 50%of the newly added installed capacity of the power grid.This is thanks to President Biden’s Inflation Reduction Act(IRA),which provides generous tax credits for electric vehicles and clean energy technologies such as wind and solar energy.The report states that an additional 5GW of installed capacity may be added in 2024 compared to last year.The expected growth rates for the sub markets of commercial,community,and utility scale are 19%,15%,and 26%,respectively.

Michelle Davis,Global Solar Director at Wood Mackenzie and lead author of the report,said,”If the supply chain of the US photovoltaic industry becomes more stable,with more tax credit financing and lower interest rates,we expect(photovoltaic installation)to increase by 17%.With supply chain constraints,reduced tax credit financing,and unchanged interest rates,we expect a decrease of 24%.”

The photovoltaic industry increased by 32.4GW in 2023,a 51%increase compared to 2022,mainly due to the improved stability of the supply chain with the completion of project backlog.The trade actions in 2022 have hindered the import of photovoltaic equipment,such as imposing tariffs on imports from certain Southeast Asian countries.

Last year,in the United States,Texas ranked first in total photovoltaic capacity due to an increase in utility scale photovoltaic installations,an increase of 77%compared to 2022.California led the way in residential and commercial installations in 2023 as consumers began utilizing the state’s current net measurement rules before transitioning to a new one in April of this year,known as NEM 3.0.However,the report states that with the transition to NEM3.0,residential photovoltaic installations in California are expected to decline by 13%in 2024.