US Rooftop Solar Demand Drops, Production Capacity Soars

Jun 6, 2024 11:09 AM ET
  • Despite a recent dip in residential solar installations, the US solar market is booming with record-breaking numbers and increased production capacity. Bright days ahead for renewable energy!

US residential solar installations hit a two-year low in the first quarter, with installers adding 1.28 gigawatts of panels, down 25% from the previous year. High interest rates and policy changes in California, the largest rooftop solar market, have contributed to the decline in demand. However, total US solar installations reached 11.8 gigawatts, the second-best quarter on record, driven by large photovoltaic power plants.

On the bright side, US solar panel production capacity has boomed, reaching 26.6 gigawatts, up 71% from the previous quarter. This increase in production capacity could potentially meet 70% of the US market's demand once factories are fully operational. Despite the challenges faced by residential rooftop installers, the overall US solar market is showing signs of growth and potential for meeting a significant portion of the country's energy needs.

Is the US solar industry facing challenges or opportunities for growth?

  • The US solar industry is facing challenges in the residential sector, with installations hitting a two-year low in the first quarter.
  • Factors contributing to the decline in residential solar installations include high interest rates and policy changes in California, the largest rooftop solar market.
  • Despite the challenges in the residential sector, total US solar installations reached 11.8 gigawatts in the first quarter, the second-best quarter on record, driven by large photovoltaic power plants.
  • US solar panel production capacity has seen a significant increase, reaching 26.6 gigawatts, up 71% from the previous quarter.
  • This increase in production capacity could potentially meet 70% of the US market's demand once factories are fully operational.
  • The overall US solar market is showing signs of growth and potential for meeting a significant portion of the country's energy needs, despite challenges faced by residential rooftop installers.
Source:
bloomberg.com

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