Skip to main content


Global Solar PV Market Report

Key Regional Markets

United States

Solar PV Capacity


GDP (Current Prices) USD (2022)


GDP Growth Forecast (constant prices) (2023-2027)
US Dollar
Country Credit Rating (S&P)


Renewable Energy capacity (2022)
Solar PV Share in Renewables (2022)
Renewable Energy Target
80% renewable energy production by 2030 and 100% carbon-free electricity by 2035
GDP Source: IMF WEO, S&P and IRENA
The United States ranks second in the world in terms of solar PV capacity and renewable energy market size. The nation passed its 300GW mark in 2021 and currently stands at 352GW of total renewable energy capacity. Attractive fiscal incentives for renewable deployment from the Biden administration is playing a pivotal role in shaping up the growth trajectory of the sector. The White House has set a target of 80% renewable energy production by 2030 and 100% carbon-free electricity by 2035. A direct impact of such ambitious targets will result in amplified deployment of solar PV, supported by declining system investment costs. Additionally, enhanced government support like the Inflation Reduction Act (IRA) implemented in 2022 will act as a key enabler for solar PV growth by catalysing state aid and private investment.


  • Combination of existing policies at the national and state levels have contributed to PV’s rapid growth
  • Attractive fiscal incentives for renewable deployment plays a pivotal role in shaping up the growth trajectory


  • Trade law enforcement, supply chain issues, and price hikes for shipping and components caused delays and cancellations of project deployments
  • Department of Commerce’s investigation into anti-dumping violations is likely to continue to limit solar technology deployment and challenge supply

Renewable Energy Mix

Source: IRENA Renewable Capacity Statistics April 2023

Conventionally, wind and solar dominate the renewable energy mix. The share of solar power has increased by 3% year-on year, marginally eating into the respective shares of wind, hydropower and bioenergy. Domestically produced electricity from wind and solar in 2022 accounted for 14% of total electricity production. Hydropower contributed 6%, and biomass and geothermal sources generated less than 1%. The Energy Information Administration projected that the wind share of the US electricity generation mix will increase from 11% to 12% from 2022 to 2023 and that solar will grow from 4% to 5% during the same period.

Installed Capacity: Status and Trend

Trend in Installed Solar PV Capacity

Source: IRENA Renewable Capacity Statistics April 2023

Annual solar PV capacity addition has generally been on the upswing during the last 5 years, with the country adding c.14GW on an average in the period of 2018- 2022. The US residential solar market continues to be a major growth driver, having added a record breaking ~4.2GW installed capacity across more than 500,000 projects for the first time in a calendar year during 2021. The trend continued in 2022, when capacity addition rose a further 40%, with a record 700,000 homeowners installing 5.9GWdc of rooftop solar. The commercial and community segment installations amounted to 1.4GW and 1GW respectively. Utilities segment installed 4.3GWdc in Q4 of 2022, bringing their annual installed capacity up to 11.8GW. In terms of electricity generation, California led in production with 26% of the national utility-scale solar electricity, followed by Texas with 16% and North  Carolina with 8%.

However, PV installation growth in the U.S. dropped during the first three quarters of 2022, from 15.9GWdc in 2021 to an estimated 13.3GWdc by the end of 2022. The decline in 2022 was driven by a ban on some Chinese goods, supply chain constraints and tariff uncertainty in the utility sector, leading to a decline in installer confidence. Despite a slow start, solar PV now accounts for 50% of all new electric-generating capacity additions in 2022, marking the fourth straight year that solar has topped the list of new additions.

Demand Drivers

In the US, both national and state-level financial incentives support the development of the photovoltaic market, although the forms and magnitude of these incentives vary. An executive order signed by President Biden in late 2021, Executive Order 14057, establishes a national level Executive Branch goal of achieving carbon pollution-free electricity by 2035 and net zero emissions economy-wide by 2050. A renewable portfolio standard (RPS) has also been established in 29 states by November 2022, which requires or encourages electricity suppliers to provide their customers with a minimum share of electricity produced by eligible renewable resources (11 of which mandate 50% or  more renewable energy).

Historically, national incentives for renewables deployment had been provided primarily through the US tax code, in the form of an Investment Tax Credit (ITC) and accelerated 5-year tax depreciation. In this regard, the Inflation Reduction Act (IRA), implemented in August 2022, has allocated a record amount of capital to the climate and energy sector, resulting in significant changes to renewable energy credits. Most of IRA’s record $369 billion investment into renewables will be in the form of tax credits for deployment and manufacturing. The IRA extends the ITC at 30% through at least 2032, then drops to 26% in 2033, and 22% in 2034, before expiring in 2035.

A major boost for solar power producers was provided by the reinstatement of the Production Tax Credit (PTC) under the IRA. It is now possible for solar projects to choose between the PTC and the Investment Tax Credit (ITC) to maximize efficiency, while large land-based wind projects are only eligible for the PTC. Companies like AES Corporation, NextEra Energy, and Xcel Energy plan to increase solar development and are poised to take advantage of the benefits.

Commercial solar adoption has been boosted by corporate clean energy goals. Through June 2022, US businesses have installed nearly 19GW of on-site and off-site solar capacity, which is double the 9.4GW installed through 2019. This recent growth is due to the rapid expansion of off-site corporate solar procurement which now represents 55% of all commercial solar use.

Market Opportunity

After experiencing a relatively lower capacity addition in 2022 with respect to the previous year, the solar industry is expected to return to growth at an accelerated pace from 2023 onwards. Several projects, delayed by procedural roadblocks in 2022, are expected to obtain module supply and come online. And by 2024, the real impacts of the IRA will begin to come to fruition as various ambiguities related to IRA tax credit would have been addressed by then.

Power purchase agreements will be a key instrument for enhanced deployment of renewables in the country. Although historically the PPA prices for wind and solar power remained competitive compared to other sources of energy, the prices have risen considerably recently due to increased capital costs, and supply chain challenges. In 2022 Solar PPA prices were up 8.5% YoY to $49.52/MWh. However, there has been some stabilizing influence in all renewable energy sectors due to the IRA, and supply chain constraints are likely to become less onerous as a result. A higher level of future energy price uncertainty will also inevitably drive corporations and off-takers to seek long-term contracts to ensure stability.

A significant role is played by energy storage in the US renewable industry. In order for the US to achieve its economic and climate goals over the next decade, standalone storage and solar + storage installations must be ramped up dramatically. EIA estimates that battery capacity in the US will more than double by 2023. Developers have reported plans to add a further 9.4GW of battery storage to the existing 8.8GW of battery storage capacity accounted  for in recent years.

The US government is actively encouraging indigenous solar manufacturing and recycling to strengthen America’s domestic solar supply chain and increase energy security. In April 2023, the Department of Energy (DOE) announced $52 million for 19 such projects, including $10 million from the Bipartisan Infrastructure Law and $30 million in funding for technologies that will help integrate solar energy into the grid. The US is now on track to increase domestic solar panel manufacturing capacity 8-fold by the end of 2024. Further, the DOE envisages the domestic supply chain for solar energy to generate $20 to $40 billion in new investments.


Source: BNEF Global PV Market Outlook
Note: The above data, as sourced from BNEF, are based on a ‘low’ investment scenario

Delays caused by the pandemic, trade law enforcement, supply chain issues, and price hikes for shipping and components caused delays and cancellations of project deployments at the beginning of the year. Despite this, the second half of the year was marked by renewed optimism, as the landmark US IRA of 2022 approved a record $369 billion in climate and energy spending. After an exceptionally low quarter for project availability in the July-September period, US developers are more confident in marketing projects, with clearer guidance on import tariffs and long- term certainty thanks to the IRA.

Even with diverse market conditions, the US solar industry is poised to grow over the next several years. As per Solar Energy Industries Association and Wood Mackenzie, capacity is expected to grow threefold and reach over 320GW in 2027.

The US PV market, like others, is also plagued with challenges that can hamper its growth despite a rising growth trajectory. The implementation of the new Net Energy Metering 3.0 scheme may threaten the growth of the most crucial residential rooftop solar segment. The California Public Utilities Commission (CPUC) unanimously approved NEM 3.0, altering the mechanism. This means that Californians will be paid 75% less on average for their exported solar production, compared to the previous regime. California will prove to be an experimental subject for the solar industry, which will closely monitor the state’s adaptability to the loss in system value.

Moreover, the Department of Commerce’s investigation into anti-dumping violations by major international solar panel providers, as well as ongoing international trade and labour concerns, including the Uyghur Forced Labor Prevention Act (UFLPA), are likely to continue to limit solar technology deployment and challenge supply.