The solar market just had its best first quarter ever.
Moreover, the future is looking even brighter.
That's according to the industry's go-to analysis, the US Solar Market Insight Report—published quarterly by the Solar Energy Industries Association (SEIA) in collaboration with the energy research firm, Wood Mackenzie.
US solar capacity increased by 6.1 gigawatts of capacity in the first quarter of 2023. Apart from being a historical best, it also marks a 47% increase over last year's first quarter.
Residential solar growth almost reaches all-time record
Each individual sector of the solar market also achieved its own record first-quarter growth with the exception of community solar. The sector was hampered by interconnection problems in many key states and, instead of achieving record growth, actually saw new solar capacity decrease by 13%.
In contrast, the residential solar market performed particularly well. In fact, the first quarter of 2023 would have likely been residential solar's best quarter ever overall had not intense rainstorms delayed numerous projects in California.
1.6 GW of new residential solar capacity come online in the US, in the first quarter of 2023 a 30% increase over last year's opening quarter. That puts the residential solar market segment on track to add 36 GW of solar over the next five years—an average annual growth rate of 6%.
The economic woes we're currently facing seem to have spurred more homeowners and small businesses to lock in a low electric rate by installing a solar system as a hedge against rising energy prices.
Commercial & utility-scale markets also see record growth
The commercial market also experienced record first-quarter growth, with 391 MW of new capacity installed. That puts the commercial sector on track for a very impressive 12% growth this year.
After a tough 2022, the utility-scale market rebounded this year, also achieving a first-quarter record with 3.8 GW of installed solar capacity.
The record quarter was driven in large part by supply chain challenges abating and previously delayed solar projects finally moving forward.
An even brighter future
The analysts at Wood Mackenzie project that the solar market to triple in size over the next five years, thanks in large part to the 30% Solar Investment Tax Credit and other solar-friendly features of last year's Inflation Reduction Act.
In addition to being the industry's best first quarter ever, the first quarter of 2023 also marked the first time solar accounted for the majority of new US electricity-generating capacity, at 54%.
Overall, it looks like the future of US energy production may belong to 100% clean and renewable solar power.