The solar industry received a tremendous boost in the first quarter as the import backlog for solar panels began to alleviate.
The number of solar energy installations in the United States increased by 47 percent, according to an industry report released on Thursday.
Many suspended large-scale projects were able to be completed and connected to the grid as a result of an increase in the availability of solar panels.
The report was published by the research firm Wood Mackenzie and the trade association Solar Energy Industries Association (SEIA).
Florida had the highest number of new installations of any state.
Solar systems now power over 1 million households.
Large initiatives for utilities and other large consumers drove the 66% year-over-year increase in installations.
The growth represents a significant reversal for the industry, which has been hampered by a lack of imported panels due to the implementation of a law intended to eliminate products produced with forced labor.
Residential solar also had a stellar quarter, with a 30% increase.
Before the state’s April implementation of a new policy that reduced a subsidy for solar panel owners, California homeowners rushed to install their systems.
According to the report, economic uncertainty is causing a decline in many states, with residential solar installations expected to increase by only 8% this year.
The report predicts that the industry will experience robust development over the next five years, due in large part to the renewable energy incentives included in President Biden’s new Inflation Reduction Act.
Between 2024 and 2028, growth rates are anticipated to be in the low teens, with installations tripling by 2029.