In the ongoing shift toward renewables, solar energy — which converts energy from the sun into electricity via photovoltaic (PV) panels — is on the rise.
Not only is solar a renewable and inexhaustible energy source — not to mention it’s available anywhere on the planet — but it is cost-effective, creates the most employment opportunities of all “green jobs”, is non-noise polluting, and requires minimal maintenance. Further, solar energy can be transferred directly to the electricity grid, which reduces the demand for fossil fuels and decreases carbon emissions. residential energy storage
Spurred by these factors, the U.S. solar energy market is quickly expanding. In 2023 — a record-breaking year for solar energy — the nation grew its solar production capacity by 33,000 megawatts, an increase of more than 50% from 2022. If this trajectory continues, solar could soon become the nation’s dominant renewable power source, but there are some significant hurdles to overcome. These include a lack of domestic solar panel manufacturers, high import costs for overseas solar panel sourcing, and diminishing incentives for those looking to install solar in their homes and businesses.
Let’s take a look at the current state of the U.S. solar industry, with consideration of its major players, market potential, overseas competitors, and federal incentives.
Some of the biggest U.S.-based solar panel manufacturers include:
Founded in 2008 and headquartered in California, Auxin Solar is the nation’s longest-running Community Solar Value Project (CSVP).
Although its production capacity is relatively small — around 150 megawatts worth of solar panels a year — the company made headlines over a controversial trade petition, which asked the U.S. Department of Commerce to consider imposing tariffs on all solar panels imported from Cambodia, Malaysia, Thailand, and Vietnam. President Biden announced in May that the U.S. would lift its U.S. import tariff exemption for bifacial panels made either in China or in the four Southeast Asian countries where some Chinese manufacturers have shifted operations. Many U.S. solar companies wanted the exemption extended out of concern that ending it would raise costs and limit their supplier pool.
Illuminate USA is an advanced manufacturing company and developer of cutting-edge solar panels. Its newly-opened manufacturing facility in Pataskala, Ohio is assembling ready-to-install, bifacial solar panels using some of the world’s most advanced and efficient panel assembly technology.
By the end of the year, the 1.1-million-square-foot factory will employ more than 1,000 Ohioans, and its annual production capacity will be 5 gigawatts (GW). That equates to 9.2 million solar panels — enough to power 1 million homes.
The company credits much of its success to the tax credits awarded to solar manufacturers via the Inflation Reduction Act.
“Born and raised in the USA”, SEG Solar is a leading solar module manufacturer with a fully integrated supply chain.
With manufacturing bases in Houston, Texas, as well as Indonesia and Thailand, the company has a total module production capacity of more than 5.5 GW.
Last month, SEG Solar celebrated the completion of its Houston plant, a $60 million facility covering 250,000 square feet. The facility specializes in producing the company’s latest high-efficiency N-type solar modules and has an annual capacity of 2 GW. "As a leading U.S. solar company, SEG is proud to be among the first to respond to the call for domestic manufacturing by constructing a solar module factory in the U.S.,” said CEO Jim Wood.
Founded in 1999, First Solar is the only company with a U.S. headquarters that sits among the 10 largest solar module producers in the world. Its advanced thin-film modules set industry benchmarks for quality, durability, reliability, design, and environmental performance. For example, its modules require just 1-2% of the semiconductor material required by traditional c-Si modules to produce the same amount of power.
First Solar’s fourth domestic facility is expected to open in the Southeastern U.S., sometime in 2025. Following that, the manufacturer will have a global annual manufacturing capacity of more than 20 GW and a footprint that spans the U.S., India, Malaysia, and Vietnam.
As of May 2024, First Solar was the leading solar energy company worldwide, with a valuation of $20.25 billion.
With more than 40 years of solar experience, Silfab Solar develops high-efficiency, premium-quality solar panels. The company leverages advanced robotics, automation, and the latest innovations in solar technology, which it says results in products with “one of the lowest defect rates in the industry.”
Earlier this year, Silfab Solar was received an innovation award and a $5 million grant from the U.S. Department of Energy. This funding will support the expansion of its new South Carolina manufacturing facility, which is projected to contribute 1 GW of American-made cell production and another 1.3 GW of module production.
Some of the world’s biggest solar panel manufacturers include:
Trina Solar was founded in China in 1997, and at the end of 2023 the company reported its production capacity as 55GW for silicon wafers, 75GW for cells, and 95GW for modules. To date, it has shipped more than 205 GW worldwide and is currently building a new production facility to further expand its capacity.
In its 2023 annual report, Trina Solar reported that revenue had increased 27% year-over-year.
Founded in 2001 in Canada, Canadian Solar is a market-leading solar technology and renewable energy company that operates more than 26 manufacturing facilities across Asia and the Americas. Most of these sites are in China — the company’s most important sales region — but the manufacturer is reshaping its global supply chain. Its first U.S. plant opened in Texas in 2023, and a second in Indiana is in the works.
In 2022, Canadian Solar’s module shipments reached 21 GW, positioning it among the world’s top five solar companies. By the end of this year, it expects its module capacity and battery storage capacity to reach 61 GW and 20 GW hours (GWh), respectively.
In 2023, the company achieved record full-year revenue of $7.6 billion.
Headquartered in China, Jinko Solar is a globally leading PV module manufacturer and energy storage system integrator. It currently operates 14 manufacturing facilities across China, the U.S., Malaysia, and Vietnam and has delivered more than 260 GW to its 4,000 customers. In 2018, Jinko Solar launched its first U.S. factory — a fully automated module assembly facility in Jacksonville, Florida — to better serve its American customer base.
In 2023, the manufacturer generated approximately $16.7 billion in revenue, up from $12.1 billion the previous year. Its monocrystalline silicon wafer, cell, and module production capacity are projected to reach 120 GW, 95 GW, and 130 GW respectively by the end of 2024.
Founded in 2000 and headquartered in China, LONGi describes itself as a world leader in the clean energy transition. Annually, it supplies more than 30 GW of solar wafers and modules worldwide, which accounts for a quarter of the current market demand.
The company operates eight main production facilities in China and has overseas sites in Malaysia, and Vietnam. LONGi plans to open a production facility in India that will consist of a cell plant and module plant.
In 2023, the company reported revenues of around $18.2 billion , making it the second-biggest solar energy company worldwide.
Headquartered in China, Aiko Solar manufactures PV core products, providing its customers with solar cells, ABC (All Back Contact) modules, and scenario-based solutions.
Earlier this year, it announced an investment of $1.39 billion for a new solar facility in China’s Anhui Province, which will make high-efficiency solar cells and have an annual output capacity of 25 GW.
In 2023, it received top marks for module efficiency on TaiyangNews’ Top Solar Modules ranking.
The Biden administration has introduced a range of incentives for both solar panel manufacturers and their customers.
As part of the 2022 Inflation Reduction Act, the section 45X Manufacturing Production Tax Credit rewards domestic manufacturers for producing clean energy products. Manufacturers that produce and sell qualifying products can claim credits on their tax return up until the 2032 tax year.
President Biden also invoked the Defense Production Act (DPA) to boost domestic clean energy manufacturing. As much as $250 million in DPA funding was allocated to the domestic supply chains for solar panels, insulation materials, fuel cells for clean hydrogen, and transformers and other critical grid components.
Several states have introduced policies to incentivize homeowners to install rooftop solar. Via a system called net metering, customers are reimbursed for any excess electricity they generate and give back to the grid. The Biden Administration also offers a solar tax credit, via which buyers can recoup up to 30% of the cost of installing a new solar power system.
The U.S. solar panel industry is experiencing tremendous growth thanks to increasing cost-effectiveness, enticing government incentives, and rapid technological advancements.
Canadian Solar is just one of the manufacturers that sees an opportunity for solar industry revival, which is why it is pivoting some of its operations back to the U.S. “According to our modeling, the incentives provided [by the Inflation Reduction Act] just offset the cost differences — labor and supply chain — between Southeast Asia and the U.S.,” Canadian Solar founder and chairman Shawn Qu said.
It’s evident that other companies are in agreement; Deloitte reported that announced manufacturing projects could more than triple the U.S.’s solar module capacity in 2024 compared to the previous year and meet the country’s demand before 2030. Watch this space.
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