Advancement in renewable energy technologies is continuously propelled by changing consumer behaviors and improved regulations in the photovoltaic market. From solar panel manufacturers to installation, the industry is set to improve on all levels from demand to efficiency in 2025.
2024 Soar Energy Market Summary
The continuous growth in solar energy resulted in the US reaching a major milestone of the total installed solar capacity of 219.8 gigawatts (GW) in 2024. This showcases the average annual growth rate of 26% over the last 10 years. The process to transition from fossil fuels is long and complex but the increase of utility-scale solar projects continues to dominate and bring us closer to global access to clean energy. Solar energy currently powers approximately 37.6 million homes across the nation and is projected to reach 15% or all US households by 2030. 2024 resulted in solar energy accounting for 67% of all new electricity-generating capacity in the country. This is a direct result of continuous technological advancements and declining cost of access to solar systems.
Continued Solar Growth in 2025
Although there is a concern that the new administration may be pulling back some of the subsidies that helped solar energy to boom, state policies are still highly in favor of the solar industry and the recent polls show that 87% of Americans support clean energy incentives. Distributed solar systems improve energy independence and with the increasing global power demand, the industry has no way of slowing down. This all is a sign that 2025 will continue providing wider household access to solar energy. A rapid growth for large-scale BESS solutions across the US is a further proof of the improved capacity and production in the solar market.
The IEA expects global electricity demand to grow by 4% in 2025 due to economic recovery. There will be an increased need for electricity to power AI, manufacturing, production, and industrial activities. This additional demand will have to be met with increased supply and because the cost of deploying solar continues to come down, this still is a very valuable source of global power.
Today, solar energy is more affordable than ever with the price of solar photovoltaic (PV) panels at nearly 40% less than a decade ago. In addition, smart inverters and Energy management Systems allow for solar to become a much more reliable source of energy. Solar plays an important role of allowing underserved communities have access to energy and addressing the needs of lower-income housing to gain access to more affordable power sources. These comminutes can benefit greatly from these technological advancements showing that clean power goes well beyond saving the environment.
Let’s not forget about the impact of solar industry on the US economy. This past year the industry employed 280,000 people and with an increased demand in installation, this number is predicted to grown in 2025. That same year over 10,000 solar-related businesses operated in our country further contributing to our country’s economy.
California, Florida and Texas continue to lead in solar energy production, but Midwestern states and seeing a large uptake as well. So, what is in store for the future of solar?
The Solar Energy Industries Association estimates that there will be a total of 450GW of new solar capacity installed in the United States by the end of 2035 which is equivalent of powering 71 million homes. The future of solar is bright and its main goal continue to be reduction in emissions, creating jobs, and building a sustainable energy future.
