US Solar Power Installations Surge In Q1: Report

The U.S. solar industry installed 6.1 gigawatts (GW) of solar capacity and had its best first quarter in history.

The data was released by the Solar Energy Industries Association (SEIA) and Wood Mackenzie.

The record quarter was largely driven by decreasing supply chain challenges and delayed solar projects moving forward.

Wood Mackenzie expects the solar market to triple in size over the next five years due to a surge in demand from the Inflation Reduction Act (IRA).

The IRA has given rise to new manufacturing announcements, with domestic module capacity expected to rise from fewer than 9 GW today to more than 60 GW by 2026. 

“As the Inflation Reduction Act begins to flex its muscle and drive demand, the U.S. solar and storage industry is eagerly awaiting further guidance on some of the most impactful pieces of the law,” said SEIA president and CEO Abigail Ross Hopper.

At least 16 GW of module manufacturing facilities are under construction as of the end of Q1 2023.

The IRA contains new credits that can be used in conjunction with the solar Investment Tax Credit, like the domestic content, energy communities, and low-income adder credits. 

"The US solar industry is slowly starting to see supply chain relief,” said Michelle Davis, head of global solar at Wood Mackenzie and lead author of the report.

Despite rising interest rates and economic headwinds, the installed solar capacity of the residential segment jumped 30% Y/Y.

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