US Solar Set for Record-Breaking Year as Incentives Kick In

(Bloomberg) -- US solar installations are on track to reach a record 33 gigawatts in capacity this year, driven by clean-energy incentives that are expected to sustain deployments for the coming years.

Installations surged 55% from 2022 as incentives from the Inflation Reduction Act spur wider use of solar power, according to a report published Thursday by the Solar Energy Industries Association and research firm Wood Mackenzie.

The gains come despite headwinds from regulatory bottlenecks, rising financing costs and shortages of some key components. The industry is working through these challenges, and solar accounted for 48% of all new generation added in the first three quarters of this year. Total US capacity is expected to reach 377 gigawatts by 2028, enough to power more than 65 million homes.

“Solar remains the fastest-growing energy source in the United States,” SEIA Chief Executive Officer Abigail Ross Hopper said in a statement. “Despite a difficult economic environment, this growth is expected to continue for years to come.”

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