The solar industry is in the middle of a serious expansion. The Solar Energy Industries Association (SEIA) says 32 gigawatts of new solar projects will be placed into service in 2023, a 52% increase from 2022 levels. These new projects could produce enough energy to power more than 10 million homes annually.
Solar energy accounted for 4.7% of the electricity generated in the U.S. in 2022 but could reach as much as 40% by 2035, according to the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy.
Why are we seeing these levels of new production and overall interest in solar energy? It comes down to a few main reasons:
- The costs have become more accessible. The cost of solar panels has decreased 80% in the past 15 years while the efficiency of panels has roughly doubled. Additionally, once the project is built, there’s minimal operations and maintenance needed. This allows utilities to generate energy at a lower cost than fossil fuel sources.
- The Inflation Reduction Act (IRA). In addition to other clean energy and tax benefits, the IRA incentivized domestic solar panel manufacturing, which the industry hopes can bring stability to the market in a few years and help customers avoid costs from aging fossil fuel facilities.
- A healthier environment and economic catalyst. Solar projects help reduce carbon dioxide emissions from fossil fuels and support native plant growth to preserve soil conditions. They also create local construction jobs, provide tax or shared revenue income to communities and provide steady income to landowners.
- Timing with peak energy use. Solar projects generate the most energy on warm, sunny days. This generally coincides with when customers use the most energy. The output of solar panels can generally be predicted by weather patterns, and it increases dramatically during the longer days of summer to limit the need for utilities to run peaking power plants.
- Recovering from supply chain challenges. The COVID-19 pandemic initially created supply chain issues that slowed project development and construction. Safety protocols and restrictions on solar panel imports delayed projects across the U.S. As those are beginning to be lifted, solar construction continues to ramp up.
Alliant Energy is in the process of placing nearly 1,500 megawatts of solar energy into service across Wisconsin and Iowa within the next few years, expected to power nearly 400,000 homes annually.
Learn more about our solar programs and the benefits of solar energy at alliantenergy.com/solar.