The U.S. solar energy sector experienced significant growth in 2024. Solar energy accounted for 64% of all new electricity-generating capacity added to the nation’s grid. Yet, challenges remain that could shape the future of this renewable energy source.

The expansion of American solar energy seen this year has brought production to a level capable of powering approximately 37 million homes. Texas and Florida led the way in new solar capacity, adding 7.9 gigawatts and 3.1 gigawatts, respectively.

Concurrently, the domestic solar manufacturing industry also saw a major boost. U.S. solar module production capacity reached nearly 40 gigawatts by the third quarter of 2024. That’s up from just 7 gigawatts in mid-2022.

Experts say the Inflation Reduction Act and the Bipartisan Infrastructure Law helped boost solar expansion.

Despite these milestones, experts highlight aging grid infrastructure, a shortage of skilled labor and interconnection delays as key obstacles to further solar energy expansion.

Additionally, the incoming Trump administration has announced plans to impose tariffs on imports. Those tariffs could raise costs for solar projects and slow development.

Looking ahead, the Solar Energy Industries Association forecasts an annual average of 43 gigawatts of new solar installations between 2025 and 2029. However, the policy environment under the new administration remains uncertain, with potential changes to green energy funding and tax incentives on the horizon.