Top Solar Energy Facts and Statistics (2024)
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Solar energy has become increasingly popular in American households within the last decade. Solar adoption is soaring, with 4.7 million systems operating as of 2023. Thanks to federal and state incentives, the cost of solar panel systems is becoming more accessible to homeowners. In this article, we outline solar energy facts and statistics to spotlight the present and future powered by the most abundant energy source on Earth.
Solar Energy Usage Facts
As solar technology improves and costs continue to fall, a growing number of homes and businesses are adopting solar energy. Solar usage is accelerating across the United States, from new construction homes built with solar arrays to expanded community solar projects. Here are some key facts about solar energy usage across the United States.
13% Growth Forecasted for the Residential Solar Market in 2023
Wood Mackenzie forecasted 13% growth for residential solar in 2023, as reported by the Solar Energy Industries Association (SEIA). Net-metering policies, solar tax credits, and building code improvements are making residential adoption easier.
Nearly 5 Million Solar Energy Systems Operating in the United States
SEIA estimates that 4.7 million solar energy systems were operating in the United States as of Q3 2023. This represents an immense 262% growth from more than 1.3 million residential solar installations in 2016.
43 U.S. States With Community Solar Projects
As of December 2022, community solar initiatives had taken root in 43 states and Washington, D.C., showcasing a significant push toward renewable energy adoption. Four states dominate nearly three-quarters of this market—Florida, New York, Minnesota, and Massachusetts lead with installations totaling 1,636 megawatts alternating current (MW-AC), 1,166 MW-AC, 875 MW-AC, and 858 MW-AC, respectively.
Record Residential Solar Installations in Q3 2023
The U.S. residential solar market achieved a new high by installing 1.8 gigawatts-direct current (GWdc) across more than 210,000 projects nationally in Q3 2023. This 12% year-over-year increase was a result of expanding state incentives.
Solar as the Largest Source of Generating Capacity by 2050
According to Wood Mackenzie projections, solar power is on track to become the biggest single source of electrical generation capacity in the United States by 2050. Driven by precipitous cost declines, improving technology, and supportive state policies, total solar capacity additions are forecast to grow over the next 25 years.
Solar Energy Cost Facts
Recent years were remarkable for solar equipment pricing, from soaring polysilicon prices in early 2022 to subsequent declines in late 2023. Continued technological improvements and manufacturing expansions ensure solar costs’ long-term trajectory remains downward.
Below, we analyze residential solar system costs, panel pricing, electricity offsets, paybacks, and more.
Average Cost of a Residential Solar System: $3.45 per Watt
Per SEIA’s Solar Market Insight Report, the national average residential solar cost per watt equated to $3.30 in the fourth quarter, a 2% year-over-year decrease in cost.
Crystalline Silicon Solar Panel Construction Prices Fell 10%
According to the U.S. Energy Information Administration, crystalline silicon tracking panel construction costs dropped 10% in 2021 to their lowest price since 2014. This drove an overall 6% decrease in solar construction costs, as crystalline silicon tracking panels comprise the majority of solar panels installed in the United States.
Average Cost of Solar Panels: $19,537 (Range: $16,037–$23,037)
The average cost of buying and installing solar panels in the U.S. is $19,537 after factoring in the federal solar tax credit. Most homeowners can expect to pay between $16,037 and $23,037 for a complete solar system installation, depending on factors such as system size, location, and equipment quality.
Expected Levelized Costs of Energy (LCOE) for Solar PV
According to the International Energy Agency’s (IEA) Renewable Energy Market Update from June 2023, the global average levelized cost of energy (LCOE) for solar photovoltaic (PV) is expected to remain 10–15% higher in 2024 compared to 2020 levels. This projection reflects the impact of factors including inflation, supply chain challenges, and increased costs for key materials such as polysilicon, steel, copper, and aluminum.
Solar Energy Growth and Jobs Facts
Solar energy continues to grow as a vibrant job-creation engine across the United States. As one of the fastest expanding electricity sources this decade, solar directly employs hundreds of thousands of people while supporting millions of indirect clean energy jobs. Here, we analyze key solar industry employment statistics.
Nearly 300,000 Jobs Added in the Clean Energy Sector
The U.S. Energy & Employment Report (USEER) 2023 highlights robust job growth within the clean energy sector. Nearly 300,000 positions were added to the sector in 2022. This surge represents a national growth rate of 3.9% for clean energy jobs, underscoring the sector’s expanding role in the U.S. economy.
Residential Solar Jobs Grow 11% While Utility-Scale Stalls
The 2022 National Solar Jobs Census published in July 2023 found that the number of residential solar workers grew 11% year over year, adding approximately 9,500 jobs as home installations continued rising. The utility-scale solar market experienced a loss of around 6,000 jobs in 2022 due to policy uncertainties. Despite this, the solar industry employed a total of 263,883 workers across all 50 states, Washington, D.C., and Puerto Rico as of December 2022, with the growth in residential solar jobs offsetting the losses in the utility-scale sector.
5% Increase in Female Workforce in the Solar Industry
Between 2017 and 2022, the solar industry witnessed an increase in gender diversity, with the proportion of women in the solar workforce rising from 27% to 31%. Despite this progress, the representation of Black individuals in the solar sector remained below the national workforce average, accounting for 9% of the solar workforce in 2022, compared to 13% representation across all industries.
Lack of Qualified Workforce in the Solar Industry
In 2022, the solar industry encountered unprecedented difficulties in recruiting qualified personnel, with 44% of employers describing the search as “very difficult”—the highest percentage ever recorded in the Solar Jobs Census.
Solar Energy Incentives
Federal and state governments have created incentives and tax credits to promote the adoption of residential and commercial solar energy. “Going solar” can be an enticing choice depending on your state. Here are some recent statistics about solar energy incentives in the United States.
3.3 Million New Roofs Will Be Installed
An average of 3.3 million new roofs (new build or replacement) are expected to be installed across America annually through 2030, creating the potential for 30 gigawatts of solar panels to be installed on homes each year, according to a 2018 study.
Federal Solar Tax Credit
From 2022 to 2032, homeowners can claim a federal solar tax credit worth 30% of their installed residential solar panel system. The tax credit from the federal government will decrease to 26% in 2033 and to 22% in 2034.
Solar Energy Statistics By State
Solar energy is a rapidly growing sector in the United States, with states across the country harnessing the sun’s power to generate electricity, create jobs, and drive economic growth. Here’s a snapshot of solar energy stats by state.
California
California leads the nation in solar energy with a staggering 46,874 MW installed, powering more than 13 million homes. This represents 28% of the state’s electricity coming from solar. With a solar workforce of 78,116, the state has invested $102.8 billion in solar energy.
Texas
Texas is a rising star in solar energy, ranking second with 22,872 MW installed. This is enough energy to power more than 2.6 million homes. The state’s solar investment totals $27.8 billion, and it leads the nation with a growth projection of 40,913 MW over the next five years.
Florida
The Sunshine State ranks third nationally with 13,912 MW of solar installed, enough to power more than 1.6 million homes. Florida’s solar market is projected to grow 15,592 MW over the next five years, maintaining its third-place ranking.
North Carolina
North Carolina has seen a significant rise in its solar capacity, now ranking fourth nationally with 9,310 MW installed and powering almost 1.2 million homes. This is a leap from its position in the thirteenth spot in 2023. It has invested $12.8 billion in solar and is projected to grow 2,345 MW over the next five years.
Arizona
Arizona solar installations are enough to power almost 1.2 million homes, with a total installed capacity of 7,675 MW. The state has invested $18.8 billion in solar. Prices have fallen by 10% over the last decade, making solar more accessible to Arizona residents.
Our Conclusion
Solar as a renewable residential energy source continues its upward trajectory. While most U.S. homes don’t currently use solar energy, data shows that more homeowners will install solar panels in the coming years. With federal and state solar energy incentives available for homeowners nationwide, it’s worth exploring solar panel options in your community.
Expert Tips and Insights
We turned to a panel of experts for their observations on the solar market and what homeowners should know before installing solar panels. Read their tips and insights below.
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