In the past decade alone, solar energy has experienced an average annual growth rate of 33%. Thanks to strong federal policies, such as the tax credit for investment in solar energy, the rapid decline in costs, and the growing demand for clean electricity in the public and private sectors, there are now more than 130.9 gigawatts (GW) of solar capacity installed across the country, enough to supply 23 million homes. Capacity is expected to increase from 129 GW today to 336 GW in 2027, the Solar Energy Industries Association and Wood Mackenzie said. In addition, the solar industry is a proven incubator for employment growth across the country.
U.S. solar jobs increased 167% over the past decade, five times faster than the overall rate of employment growth in the U.S. UU. There are more than 250,000 solar energy workers in the United States in fields that cover manufacturing, installation, project development, trading, distribution, and more.
Solar energy has not reached its full potential as a source of clean energy for the United States, and much work remains to be done to boost the deployment of solar technologies. Solar hardware costs have dropped dramatically, but market barriers and grid integration challenges continue to hamper further deployment. The “soft” costs of solar energy not related to hardware, such as permits, financing and customer acquisition, are becoming an increasing fraction of the total cost of solar energy and now represent up to 65% of the cost of a residential PV system. Technological advances and innovative market solutions are still needed to increase efficiency, reduce costs and allow utility companies to rely on solar energy as a basic energy source.
Read the latest on the solar energy market in the quarterly update on the solar industry from the National Renewable Energy Laboratory. Learn more about the goals set by the U.S. The Department of Energy's Office of Solar Energy Technologies (SETO) will drive innovation and cost reduction. Download the Solar Futures study report.
Learn more about SETO, its areas of research and how solar energy works. Forrestal Building, 1000 Independence Avenue, SW-Washington, DC 20585.A combination of private sector innovation and stable, long-term public policies will guide the solar industry towards achieving these more aggressive objectives to address climate change and decarbonize the economy. Chile is the only country with a mature solar market in which the maximum growth rate has been higher than necessary. According to the International Energy Agency, in order to limit global warming to 1.5°C, renewable energies must reach 61% of the world's electricity in 2030 and 88% in 2050, and solar and wind energy will be the dominant party.
. They find that in countries where solar growth has stabilized at a maximum rate, that growth has been, on average, 0.6% of total electricity supply per year. You can explore the SEIA Solar Means Business report, which includes interactive maps and data tools on the top corporate users of solar energy in the U.S. Perhaps the most significant advance of the Inflation Reduction Act for the solar industry was the long-term extension of the Investment Tax Credit (ITC) by 30%.
The fixed costs of solar energy are still much higher than those of other developed solar markets around the world. With just over 1% of commercial electricity demand met by on-site solar energy, there are still significant opportunities for growth. In addition, evidence suggests that the spread of renewable energy is socially contagious: when a house installs solar energy on the roof, neighbors who see and talk about it are more likely to install solar energy on the roof themselves. Solar panels can also be installed on roofs with virtually no impact on land use, and it is expected that more than one in seven U.