US Solar Capacity & Growth
The US solar market has expanded at a compound annual growth rate of over 25% for the past decade:
- Total US installed solar capacity (2024–2025): ~225–235 GW (utility + commercial + residential combined)
- Annual new additions (2024): ~45 GW — the largest single-year addition in US history
- Solar share of US electricity generation: ~6% (2024), up from 0.4% in 2015 and projected to reach 10–14% by 2030
- Residential solar installations: 4.5+ million US homes with rooftop solar
- Solar's share of all new electricity capacity: 55% of all new generating capacity added in the US in 2024
The US Energy Information Administration (EIA) projects solar to remain the fastest-growing electricity source through 2030 under current IRA policy, with total US capacity potentially reaching 500 GW by 2030 and 1,000 GW (1 TW) by 2035.
Solar Energy Cost Trends
The dramatic cost decline of solar is one of the most significant energy stories of the past 15 years:
| Year | Utility-Scale Solar LCOE | Residential Installed Cost |
|---|---|---|
| 2010 | ~$0.36/kWh | ~$7.50/watt |
| 2015 | ~$0.12/kWh | ~$4.50/watt |
| 2020 | ~$0.05/kWh | ~$3.20/watt |
| 2024 | ~$0.03–0.05/kWh | ~$2.50–3.50/watt |
Key milestones:
- Solar module prices (2024): $0.15–$0.25/watt for utility-scale modules, down from $1.50+/watt in 2012
- Solar is now the cheapest source of new electricity in most of the world (IEA, 2023)
- Residential solar payback period (national average): 7–10 years, down from 15+ years in 2015
- 30% federal ITC (through 2032) reduces effective system cost by nearly a third for all qualifying projects
Top Solar States by Installed Capacity
Solar resources and policy support vary dramatically by state. The top solar markets in the US:
- California — 45+ GW installed; 35%+ of electricity from solar; leading residential market
- Texas — 35+ GW; fastest-growing utility-scale solar market; growing ERCOT grid contribution
- Florida — 20+ GW; strong residential growth driven by high electricity rates ($0.14–$0.18/kWh)
- Arizona — 15+ GW; among the best solar irradiance in the US (GHI: 5.5–6.5 kWh/m²/day)
- Nevada — 12+ GW; major utility-scale hub with low land costs and 5.8–6.2 peak sun hours
- North Carolina — 11+ GW; nation's second-largest utility-scale solar state east of the Mississippi
- New Jersey — 6+ GW; highest solar penetration per capita on the East Coast; strong RPS policy
Explore solar irradiance, production estimates, and financial data for 200+ US cities on our solar data portal.
Solar Jobs & Economic Impact
The solar industry is one of the fastest-growing employment sectors in the US:
- Total direct US solar jobs (2024): ~260,000 — up 168% over the past decade
- Solar installer is one of the two fastest-growing occupations in the US (Bureau of Labor Statistics)
- Annual US solar investment (2024): $60+ billion in project development and manufacturing
- Projected solar jobs by 2030: 500,000+ under IRA policy scenarios with domestic content incentives
- Manufacturing investment: 50+ GW of announced US solar panel and cell manufacturing capacity since the IRA passed in 2022
The Inflation Reduction Act (2022) domestic content bonuses have reversed the trend of solar manufacturing moving offshore, with major investments announced in Georgia, Ohio, Indiana, and Arizona.
Global Solar Energy Statistics
The US is part of a dramatic global solar boom:
- Global installed solar capacity (2024): ~2,000 GW (2 TW), up from 500 GW in 2018 — a 4x increase in 6 years
- China's share: ~40% of global installed capacity; world's largest installer and manufacturer
- Global annual solar additions (2024): ~450 GW — more than all other electricity sources combined
- Global solar share of electricity: ~5–6% of total generation, up from ~1% in 2018
- Countries with 15%+ solar electricity share: Germany, Australia, Netherlands, Italy, Japan
- IEA projection: Solar to be the world's largest electricity source by capacity before 2030
Residential vs Commercial vs Utility-Scale Solar
US solar capacity is distributed across three segments with distinct economics:
| Segment | Share of New Additions | Installed Cost Range | Primary Driver |
|---|---|---|---|
| Utility-scale (>1 MW) | ~65% | $0.90–1.50/W | Long-term PPAs, low land cost |
| Commercial & Industrial | ~15% | $1.50–2.50/W | Avoided commercial electricity costs |
| Residential (<10 kW) | ~20% | $2.50–3.50/W | ITC, net metering, rate hikes |
Utility-scale solar dominates new additions due to its significantly lower cost per watt, but residential and commercial solar capture a larger share of electricity savings due to retail rate offsets.
For location-specific analysis of how solar economics work at your site, start a free site analysis in SolarScope using real NREL irradiance data.