According to the U.S. Solar Market Insight Q2 2023 report by the Solar Energy Industries Association (SEIA) and Wood Mackenzie, the U.S. solar business simply skilled its greatest first quarter ever, with 6.1 GW of solar capability put in. Supply chain challenges abating and delayed solar tasks resuming largely drove the document quarter.
Due partly to the robust first quarter numbers and a surge in demand ensuing from the Inflation Reduction Act (IRA), Wood Mackenzie expects the solar market to triple in dimension over the subsequent 5 years, bringing whole put in solar capability to 378 GW by 2028.
The IRA has additionally prompted a surge of latest manufacturing bulletins, with home module capability anticipated to rise from fewer than 9 GW at the moment to greater than 60 GW by 2026. At least 16 GW of module manufacturing services are below building as of the top of the primary quarter of 2023.
This quarter, the Biden administration offered some readability on how the IRA’s adder credit might be utilized. The landmark legislation accommodates new credit that can be utilized along with the solar Investment Tax Credit, just like the home content material, energy communities, and low-income adder credit. In specific, the energy communities and low-income adder steering will assist drive solar and storage funding in underserved communities.
Despite rising rates of interest and financial headwinds inflicting buyer hesitancy, the residential phase put in 1.6 GW of solar capability within the first quarter of 2023, a 30% improve from the primary quarter of 2022. The residential market phase is on observe so as to add 36 GW of solar over the subsequent 5 years, rising at a median annual charge of 6%.
The business market additionally had a document first quarter, with 391 MW put in, placing the phase on observe for 12% progress in 2023. Meanwhile, the neighborhood solar phase put in 212 MW, a 13% lower from the primary quarter of 2022 due largely to ongoing interconnection challenges.
The utility-scale market rebounded from a troublesome 2022 with a powerful first quarter and a document 3.8 GW of put in solar capability.
By far, Florida was the highest solar state within the first quarter of 2023 because of 1.46 GW of utility-scale solar installations. Florida put in over 70% extra solar capability within the first quarter than the subsequent highest state, California.
Due partly to these installations, the solar business accounted for 54% of all new electricity-generating capability added to the grid within the first quarter.
Image by Oregon Department of Transportation on Flickr.