The United States just saw one of its strongest quarters in solar capacity additions on record, but growth will slow down going forward due to the federal trade and energy policies, the Solar Energy Industries Association (SEIA) said on Monday.
During the first quarter of the year, the U.S. solar industry installed 10.8 gigawatts direct current (GWdc) of capacity, down by 7% from Q1 2024 and a 43% decrease compared with Q4 2024, but still the fourth largest quarter on record, according to the quarterly report by SEIA and Wood Mackenzie.
Solar accounted for 69% of all new electricity-generating capacity added to the U.S. grid in January-March.
Moreover, the industry added 8.6 gigawatts of new solar module manufacturing capacity—this was the third-largest quarter for new manufacturing capacity on record.
Texas and Florida, as well as several other states that President Donald Trump won in the 2024 presidential election, were the leaders in solar power installations, the report showed.
Therefore, the association warned that if Congress fails to modify the changes to energy tax incentives passed by the House, “jobs, investments, and factories in Trump country will be hit the hardest.”
Solar’s success is at risk, SEIA president and CEO Abigail Ross Hopper said, adding that “If Congress fails to fix the legislation passed by the House – which would render the energy tax incentives unusable – lawmakers will trigger a dangerous energy shortage that will raise our electric bills and stop America’s manufacturing boom in its tracks.”
The base case forecasts in the report reflect the expected impacts of the latest U.S. tariffs, but they exclude potential tax credit changes or other provisions proposed in the most recent budget reconciliation bill.
“If Congress cuts energy tax incentives, SEIA’s analysis projects that energy production will fall 173 TWh and the United States will not be able to meet demand or compete with China in the global race to power AI,” the association warned.
By Tsvetana Paraskova for Oilprice.com
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