Solar industry statistics 2024
The solar sector is experiencing the fastest growth among renewable energy sources in the U.S., driven by federal policies such as the solar investment tax credit, reduced installation costs and a rising demand for clean energy. Over the last three years, solar has consistently been the primary source of new generating capacity added to the grid. In 2023, solar energy accounted for 55% of all new electric capacity added, the first time in 80 years that a renewable source dominated most of the new capacity generation.
By the first quarter of 2024, 30 U.S. states had each installed more than a gigawatt (GW) of solar capacity, a sharp increase from just three states a decade earlier.
Solar installation capacity in the U.S. has seen remarkable growth, increasing by nearly 578% from 2013 to 2023.
Jump to insightSolar energy has risen as the primary contributor of new electricity-generating capacity to the U.S. grid. In the first quarter of 2024, the solar sector accounted for 75% of all newly added electricity-generating capacity.
Jump to insightThe number of Americans employed in the U.S. solar energy industry more than doubled in a period of 12 years, growing to 263,882 solar energy workers as of December 2022.
Jump to insightTexas installed more solar capacity in 2023 than any other state, with California following closely behind.
Jump to insightEstimates indicate that the U.S. solar industry will maintain a steady annual installation capacity of approximately 40,000 MWdc for the next five years.
Jump to insightSolar industry statistics
In the last decade, solar energy has transformed from a minor player in the U.S. energy landscape into a major force in the clean energy economy, becoming pivotal in efforts to meet global climate change targets. Its growing competitiveness with other technologies has significantly boosted its contribution to electrical generation, soaring from just a 0.1% share of U.S. electrical generation in 2010 to over 6% today. In addition, solar has emerged as the leading source of new generating capacity added to the U.S. grid, accounting for 75% of all new electricity-generating capacity added in the first quarter of 2024.
Solar has achieved an average annual growth rate of 25% over the last 10 years, with a total capacity now exceeding 200 GW nationwide, enough to supply electricity to more than 36 million homes. This capacity is projected to more than double by 2029, reaching 438 GW.
In 2023, the U.S. solar industry was valued at $51.4 billion, underscoring its critical role in the country’s energy strategy and economic growth.
Solar industry employment by year
A surge in solar installations has established the U.S. solar industry as a significant driver of job creation. From 2010 to 2022, the number of solar-related jobs in the U.S. more than doubled, adding over 170,000 positions.
Approximately two-thirds of America’s solar jobs in 2022 were concentrated in installation and project development, with 171,558 positions among residential, commercial, community solar and utility-scale projects. Additionally, 33,473 solar jobs were in the manufacturing sector, which is expected to expand as more domestic manufacturing plants for solar panels, cells and wafers start operations.
Initially, the growth in solar jobs closely mirrored the increase in installed capacity until 2016. However, post-2016, while the installed capacity continued to expand, the number of solar jobs stabilized. Between 2017 and 2022, the annual installed capacity nearly doubled, yet job growth in the sector grew by just 5.4%, indicating a significant improvement in labor productivity.
By December 2022, there were 263,882 solar jobs spread across all 50 states, Puerto Rico and Washington, D.C. The year 2022 marked a transitional phase for the U.S. solar industry, highlighted by the passage of the Inflation Reduction Act. This legislation is anticipated to catalyze growth in solar and other clean energy sectors, potentially accelerating job creation in the coming years. Despite the strides in labor productivity, it is projected that hundreds of thousands of additional workers will be needed to match the installation growth driven by the new incentives.
Solar workforce demographics
The Interstate Renewable Energy Council’s National Solar Jobs Census, which was conducted in 2022, provides insights into the demographics of America’s solar workforce.
Solar workforce by race/ethnicity
Individuals identifying as Black or African American accounted for 9% of the solar workforce in 2022, lower than their 13% representation across the entire U.S. workforce.
By contrast, other racial or ethnic groups are overrepresented in the solar industry. Americans of Asian descent make up 9% of solar employees, surpassing their 7% share of the overall U.S. workforce. Workers identifying as Hispanic or Latino account for 22% of solar industry employees, higher than their 19% contribution to the general workforce. This difference can be partly attributed to the prominent Latino communities in states where the solar industry is particularly strong, like California, Texas and Florida.
Other solar workforce demographics
Aside from differences in race and ethnicity, the makeup of solar industry employees varies from the makeup of the general workforce in other notable ways:
- Gender: Women constitute only 31% of the solar workforce, which is significantly lower than their 47% share of the labor market overall.
- Disabilities: Employees with disabilities account for 2.5% of the solar workforce, falling short of their 4% share of the total labor market.
- Military background: Veterans comprise 8% of solar employees, higher than their 5% share of the overall U.S. workforce. In the solar sector, veterans have been considered valuable candidates for entry-level and leadership positions alike.
- Criminal background: Formerly incarcerated individuals make up 1.4% of solar employees, slightly lower than their broader workforce share of 2%.
Solar prices and growth
Over the last decade, the overall cost of solar installation has decreased by over 40%, prompting the industry's expansion nationwide. The significant drop in the average price of photovoltaic systems across all solar sectors is evident in the following figures:
Moreover, solar installation capacity in the U.S. surged from 5,943 megawatts-direct current (MWdc) in 2013 to 40,290 MWdc in 2023, marking an increase of nearly 578% over the past 10 years.
Following record-breaking growth in 2023, the solar industry is anticipated to install a similar capacity in 2024. While growth is expected to plateau this year, the projected annual installation volume remains nearly twice that of 2022. Notably, the first quarter of 2024 saw the installation of 11,800 MWdc of capacity in the U.S. solar market, setting a new industry record for first-quarter installations.
Solar industry by state
According to the Solar Energy Industries Association, the leading state in the solar energy economy based on installed solar capacity in 2023 was Texas, followed by California, Florida, Colorado and Ohio.
Solar energy forecast
Projections for the U.S. solar industry suggest a consistent annual installation of around 40 gigawatts-direct current (GWdc) over the next five years. The growth is expected to be flat in 2024 and 2025, primarily due to a deceleration in the utility solar sector. However, as different market segments stabilize from 2026 to 2029, the industry anticipates average annual growth in the single digits. Within this period, utility-scale solar is set to grow by just 3%, while the residential and commercial solar sectors are expected to grow by 9% and 11%, respectively. Community solar, on the other hand, is projected to decline by 8%.
The solar industry faces multifaceted challenges, including technological feasibility, interconnection delays, expensive network upgrades, cost competitiveness, module availability, labor shortages, high interest rates and resistance to new projects. These challenges are not unique to the solar sector; they are among the most critical issues facing the broader energy transition.
FAQ
How big is the solar industry?
In 2023, the U.S. solar industry was valued at $51.4 billion, with almost 5 million solar energy systems installed nationwide and over a quarter million people employed. Moreover, that same year, solar achieved a historic milestone as the first renewable energy source in 80 years to account for the majority of new additions to the U.S. grid, representing 55% of all new generating capacity.
Is the solar industry growing or slowing down?
The solar industry experienced a 25% average annual growth rate over the last decade. It is projected that the industry will continue to expand over the next five years, with annual growth averaging in the single digits.
Why do so many solar companies fail?
Solar companies face challenges such as high upfront capital costs, fluctuating prices of solar panels and fierce market competition. Complex and evolving solar energy regulatory frameworks, policies and incentives at the regional and state level further the difficulty of maintaining a successful solar company.
Who is the largest consumer of solar energy?
China was the largest consumer of solar energy in 2022, accounting for 32.3% of global solar energy consumption.
References
- “Solar and wind to lead growth of U.S. power generation for the next two years.” U.S. Energy Information Administration. Evaluated June 19, 2024.Link Here
- Akshay, V. “Is Solar Business Profitable?” Republic of Solar. Evaluated June 22, 2024.Link Here
- “Solar Industry Research Data.” Solar Energy Industries Association. Evaluated June 19, 2024.Link Here
- “Solar Market Insight Report Q2 2024.” Solar Energy Industries Association. Evaluated June 19, 2024.Link Here
- “National Solar Jobs Census 2022 - Solar Job Trends.” Interstate Renewable Energy Council. Evaluated June 20, 2024.Link Here
- “Leading the Charge: The Top 5 Solar States of 2023.” Solar Energy Industries Association. Evaluated June 20, 2024.Link Here
- “American Solar Panel Manufacturing Capacity Increases 71% in Q1 2024 as Industry Reaches 200-Gigawatt Milestone.” Solar Energy Industries Association. Evaluated June 19, 2024.Link Here
- “Solar data cheat sheet.” Solar Energy Industries Association. Evaluated June 20, 2024.Link Here
- “National Solar Jobs Census 2022 - Demographics.” Interstate Renewable Energy Council. Evaluated June 21, 2024.Link Here
- “Akshay, V. “Why Do So Many Solar Companies Go Out Of Business?” Republic of Solar. Evaluated June 22, 2024.Link Here
- Fernandez, L. “Leading countries by solar energy consumption worldwide in 2022.” Statista. Evaluated June 22, 2024.Link Here
- “Women in the Workforce: Underrepresentation in Management Positions Persists, and the Gender Pay Gap Varies by Industry and Demographics.” U.S. Government Accountability Office. Evaluated June 26, 2024.Link Here
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