In a monumental achievement, solar energy accounted for the majority of new capacity added to the nation’s electric grids last year, surpassing hydropower for the first time since World War II. This information was revealed in a report by the Solar Energy Industries Association (SEIA) and Wood MacKenzie. The 32.4 gigawatts of solar power added in 2023 far exceeded previous records, making up 53% of new capacity, with natural gas coming in at 18%.
SEIA declared 2023 as the best year for renewables post-WWII, highlighting the significant growth in solar installations in states like Texas and California. The easing of supply chain constraints that had hindered the delivery of solar panels in 2022 contributed to this growth, with utility-scale installations leading the surge.
According to experts, the strong growth in renewable energy is expected to continue, driven by the established nature of solar and wind energy, and the continuously falling costs of solar power. By the next decade, the report predicts a potential addition of nearly 500 gigawatts of solar power to the U.S. energy mix, contingent on policy and market advancements.
Despite its rapid growth, solar energy currently only makes up 5% of the U.S. electricity mix, but projections indicate a potential addition of nearly 500 gigawatts in the next decade. Factors like funding from the Inflation Reduction Act play a significant role in driving this growth, with significant investments in utility-scale solar projects recorded in 2023.
While solar industry growth is expected to continue, challenges like lengthy interconnect times and evolving state-level policies may impact the pace of expansion. However, the direction of the industry remains clear, as experts anticipate continued growth in the solar sector.
