US solar expansion slows ahead of Trump era

The US solar industry is heading into a slow growth phase, with installation rates expected to plateau through the decade’s end, even before factoring in potential policy changes from President-elect Donald Trump.

According to a report by Wood Mackenzie and the Solar Energy Industries Association, installations in 2024 will decrease by 1.8 per cent to 40.5 gigawatts. Over the next five years, growth will be essentially flat, averaging around 2 per cent annually.

Michelle Davis, head of solar research at Wood Mackenzie, cited external challenges such as labour issues and long waits to connect projects to the grid as factors limiting growth.

The report did not account for potential changes under President-elect Donald Trump, who has been critical of clean energy and has pledged to roll back climate policies.

Uncertainty also looms over potential tariffs on renewable components. While President Joe Biden’s climate policies have boosted domestic manufacturing, with US panel-production capacity nearing 40 gigawatts, the future remains uncertain under the new administration.

Attribution: Bloomberg

Subediting: M. S. Salama