America lets the sun (energy) in – meaning: The expansion of solar energy is booming in the USA and is setting records – thanks in part to the IRA investment program worth billions.
According to studies, the solar industry in the USA is on the rise, and in the first quarter a new record was set for the amount of solar power installed in the first quarter of a year. A total of 6.1 gigawatts (6,100 megawatts) of solar power capacity was installed last quarter, according to the latest US Solar Market Insight report.
IRA pushes green technology
The report from the Solar Energy Industries Association (SEIA) and Wood Mackenzie shows that much of the growth spurt is due to better management of supply chain challenges.
Looking to the future, SEIA and Wood Mackenzie expect solar energy to grow rapidly in the years to come, particularly fueled by the Inflation Reduction Act. They assume that the US solar market will triple in size in the next 5 years. That would mean reaching 378 GW of solar power by 2028.
The IRA has also sparked a wave of new production facility announcements, with domestic module capacity expected to grow from less than 9 GW today to over 60 GW by 2026. By the end of the first quarter of 2023, at least 16 GW of module manufacturing facilities will be under construction.
The solar market sets a new record in the USA – Florida, the sunny state, is the leader
The IRA has also sparked a wave of new production facility announcements, with domestic module capacity expected to grow from less than 9 GW today to over 60 GW by 2026. By the end of the first quarter of 2023, at least 16 GW of module manufacturing facilities will be under construction.
IRA: Funding millions push green tech and solar energy
Florida was by far the leading solar state in Q1 2023 thanks to 1.46 GW of utility scale solar. Florida installed over 70% more solar capacity in the first quarter than the next-ranked state, California.”
“As the Inflation Reduction Act unfolds and stimulates demand, the US solar and storage industry is eagerly awaiting further guidance on some of the key parts of the Act,” said Abigail Ross Hopper, President and CEO of SEIA.
“Timely, specific and workable implementation guidance from the government will have a major impact on our success in both the short and long term. This guidance is very powerful, and if properly implemented, could unlock new market potential across the country.
Greentech Index: Solar-Energie in USA
The solar energy situation in the USA is very complex and depends on many factors. The development is definitely lagging behind with a mega potential of solar energy in America. We have summarized some factors here:
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Political support: Europe has typically shown stronger political support for renewable energy, including solar energy. Governments in many European countries have set long-term policy targets and incentives for renewable energy, such as feed-in tariffs and support schemes. In the US, on the other hand, there are different regulations from state to state and no uniform political support at the federal level.
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Cost: The cost of solar energy has decreased significantly in recent years, which has contributed to its growing adoption. Europe has developed an advanced renewable energy industry, leading to greater availability of low-cost solar technologies. In the US, higher manufacturing costs and limited market viability of solar systems in some regions may complicate adoption.
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Grid connection: The integration of solar systems into the electricity grid can be a challenge. In some parts of the USA there is a lack of sufficient grid connections and storage capacities to use the generated solar energy efficiently. In this regard, Europe may have better infrastructure and more experience in integrating renewable energies into the electricity grid.
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Geographic Differences: Europe has geographic advantages for solar energy, particularly southern countries with sunnier climates such as Spain, Italy and Greece. The US is a large country with varied climatic conditions, which can affect the efficiency of solar energy.
Success Factor Green Technology and Energy for the US Economy
Despite these challenges, solar energy in the US has made significant advances in recent years. Costs have come down and progress has been made in policy support and infrastructure for renewable energy.
Accordingly, the USA has the potential to play a leading role in solar energy in the future.