U.S. surpasses 50 GW of solar module manufacturing capacity
From pv magazine USA
Solar module manufacturing in the U.S. has grown five-fold since the passage of the Inflation Reduction Act (IRA), the Bipartisan Infrastructure Law and the CHIPS Act. The U.S. is now the 3rd largest solar module producer in the world, according to the Solar Energy Industries Association.
SEIA reported that 70 new solar and storage manufacturing facilities have come online as the result of federal manufacturing incentives and 47 facilities are under active construction. Overall, solar manufacturers have announced $36 billion of investments in the U.S. in the last two years, which will create over 44,000 manufacturing jobs, according to SEIA.
These investments will bring the total planned capacity of solar modules to over 50 GW, solar cells to 56 GW, wafers to 24 GW and ingots to 13 GW. Growth is seen further upstream as well, with solar tracker manufacturing now exceeding 80 GW.
“The U.S. is now the third largest module producer in the world because of these policy actions,” said SEIA president and CEO Abigail Ross Hopper. “This milestone not only marks progress for the solar industry but reinforces the essential role energy policies play in building up the domestic manufacturing industry that American workers and their families rely on.”
The planned facilities will have the capacity to produce enough across the supply chain to meet the demand for solar in the U.S., SEIA reported.
This achievement comes at a critical time when tariffs threaten to increase the cost of imports into the U.S. Having a complete domestic supply chain makes the U.S. less dependent on other countries, and also enables solar developers to procure domestic content, for which they would be eligible for a 10% tax credit adder under the IRA.
The IRA’s production tax credit motivated companies such as South Korean Qcells to set up shop in the U.S., which has increased U.S. manufactured goods and provided thousands of jobs.
Qcells said the Inflation Reduction Act’s “game-changing incentives” have led to the company creating over 4,000 manufacturing jobs, “which is proof that re-industrialization policies in the clean energy industry are succeeding.”
In 2020, SEIA set a goal for 50 GW of U.S. solar manufacturing capacity across the supply chain by 2030. Five years ago, there was only 7 GW of domestic module manufacturing capacity, 41 metric tons of polysilicon manufacturing capacity, and some inverter and racking manufacturing.
With domestic manufacturing comes jobs. SEIA reports that recent investments in manufacturing facilities will create nearly 49,000 manufacturing jobs and expects that number to more than double by 2033.
In addition to planned solar manufacturing facilities, long-time domestic manufacturers are expanding as well. For example, First Solar, a U.S. thin film manufacturer has been manufacturing in the U.S. since 1999. The company recently set up an additional facility in Alabama, which will bring its capacity to 11 GW of domestic capacity when fully ramped up. The company has been operating three facilities in Ohio and is currently constructing $1.1 billion 3.5 GW plant in Louisiana expected to come online next year, after which the company will have over 14 GW of domestic capacity. The plant in Lawrence County, Alabama is expected to create over 800 new manufacturing jobs.
Access the interactive map here (shown above) of U.S. manufacturers of solar modules, mounting systems, power electronics and the battery supply chain.
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