There’s no getting around it, 2024 was a challenging year for the solar industry and many installers. Anecdotal evidence shows that mentions of the phrase “solar coaster” in industry Slack messages rose by a factor of 100.
But, it’s important to remember that while the solar coaster is real, and we all feel it, its long-term direction is up and to the right — and that’s because of the dedicated and passionate people in the field. When we were reading SEIA’s Solar Market Insights Report for the fourth quarter of 2024, this fact jumped off the page in one chart.
New generating capacity is the amount of additional power generation capability that has been installed and made operational within a specific period. It represents the expansion of the energy grid’s ability to produce electricity, often through the addition of new power plants or renewable energy systems like solar, wind, or storage solutions.
And solar made up 64% of new generating capacity. When you add storage to the mix? It jumps to 84%.
To quote SEIA President and CEO, Abigail Hopper, “Solar alone … is about 15x more than natural gas and more than every other energy source COMBINED.”
There’s no doubt that residential solar has been hit particularly hard thanks to high interest rates, installer and financier bankruptcies, and other factors. But there is light at the end of the tunnel, according to SEIA.
“There is positive momentum and cautious optimism for the residential solar market heading into 2025,” the report says. “While slower sales earlier in the year led to fewer installations in 2024, some installers report that sales volumes have increased in the second half, which will drive recovery in 2025 as these projects are installed.”
So, we’re not out of the woods, yet. And, as installers continue to find creative ways to make solar an attractive investment — third-party ownership options, advanced advanced battery storage capabilities, and more — the basic facts remain…
“Solar is simply the most cost-effective energy source on the market. It’s quick to deploy and it delivers reliable energy.”
— Abigail Hopper, President and CEO, SEIA
Please read the entire report for the interactive versions of these charts and much, much more. We’ll be keeping them prominently placed in our office as a daily reminder.
