2023-12-07 21:50:00
The solar energy industry in the United States is expected to see significant growth this year, with a record 33 gigawatts of generating capacity set to be added. This represents a 55% increase compared to the previous year, but the pace of growth is expected to slow in 2024 due to economic challenges.
According to a report by the Solar Energy Industries Association (SEIA) and Wood Mackenzie, the US saw an addition of 6.5GW of electric generation capacity in the third quarter, driven by record installations of residential solar panels. However, changes in California’s net energy metering policy and high interest rates across the US are expected to lead to a decline next year, although growth is anticipated to resume in 2025.
Michelle Davis, head of research at Wood Mackenzie, stated that the US solar industry is on a strong growth trajectory, with expectations for 55% growth this year and 10% growth in 2024. The solar market accounted for nearly half of all new electricity generation capacity added to the US grid during the first three quarters of 2023.
California and Texas led the way in new solar installations, with a total of 14 states and Puerto Rico installing more than 100,663 megawatts of new solar capacity during that period. Despite the optimism, there are challenges in the European market, as demand in the last year led to large inventories at distributors, resulting in low orders for several quarters.
Solaredge, a key player in the solar energy industry, has faced disappointing reports for the third quarter of 2023, with results falling short of expectations. The company’s CEO, Zvi Lando, expressed confidence in the future but acknowledged the slow market environment and high inventory of products in distribution channels, particularly in Europe.
In light of the challenges facing the solar energy industry, the outlook for 2024 remains uncertain, with strong competition from younger and cheaper companies on the horizon. Despite this, the long-term potential for solar energy remains significant, with industry growth expected to average 14% per year over the next five years.
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