More than half of new U.S. electric-generating capacity in 2023 will be solar

Michigan Distributed Energy Cap Repeal advances a bipartisan bill to boost rooftop solar and net metering, countering DTE and Consumers Energy claims, expanding energy freedom, jobs, and climate resilience across investor-owned utility territories.

Key Points

A Michigan bill to remove the 1% distributed energy cap, expanding rooftop solar, net metering, and clean energy jobs.

✅ Removes 1% distributed generation cap statewide

✅ Supports rooftop solar, net metering, and job growth

✅ Counters utility cost-shift claims with updated tariffs

A bipartisan group of Michigan lawmakers has introduced legislation to eliminate a 1% cap on distributed energy in the state’s investor-owned utility territories.

It’s the third time in recent years that such legislation has been introduced. Though utilities and their political allies have successfully blocked it to date, through tactics some critics say reflect utilities tilting the solar market by incumbents, advocates see an opportunity with a change in state Republican caucus leadership and Michigan’s burgeoning solar industry approaching the cap in some utility territories.

The bill also has support from a broad swath of legislators for reasons having to do with job creation, energy freedom and the environment, amid broader debates over states' push for renewables and affordability. Already the bill has received multiple hearings, even as DTE Energy and Consumers Energy, Michigan’s largest private utilities, are ramping up attacks in an effort to block the bill. 

“It’s going to be vehemently opposed by the utilities but there are only benefits to this if you are anybody but DTE,” said Democratic state Rep. Yousef Rabhi, who cosigned HB 4236 and has helped draft language in previous bills. “If we remove the cap, then we’re putting the public’s interest first, and we’re putting DTE’s interest first if we keep the cap in place.” 

The Michigan Legislature enacted the cap as part of a sweeping 2016 energy bill that clean energy advocates say included a number of provisions that have kneecapped the small-scale distributed energy industry, particularly home solar. The law caps distributed energy production at 1% of a utility’s average in-state peak load for the past five years. 

Republicans have controlled the Legislature and committees since the law was enacted, amid parallel moves such as the Wyoming clean energy bill in another state, and previous attempts to cut the language haven’t received House committee hearings. However, former Republican House leader Lee Chatfield has been replaced, and already the new bill, introduced by Republican state Rep. Gregory Markkanen, the energy committee’s vice chair, has had two hearings. 

Previous attempts to cut the language were also a part of a larger package of bills, and this time around the bill is a standalone. The legislation is also moving as Consumers and Upper Peninsula Power Co. have voluntarily doubled their cap to two percent, which advocates say highlights the need to repeal the cap . 

Rabhi said there’s bipartisan support because many conservatives and progressives view it as an infringement on customers’ energy freedom since the cap will eventually effectively prohibit new distributed energy generation. Legislators say the existing law kills jobs because it severely limits the clean energy industry’s growth, and Rabhi said he’s also strongly motivated by increasing renewable energy production to address climate change. 

In February, Michigan Public Service Commission Chairman Dan Scripps testified to the House committee, with observers also pointing to FERC action on aggregated DERs as relevant context, that the commission is “supportive in taking steps to ensure solar developers in Michigan are able to continue operating and thus support in concept the idea of lifting or eliminating the cap” in order to protect the home solar industry. 

The state’s solar industry has long criticized the cap, and removing it is a “no brainer,” said Dave Strenski, executive director of Solar Ypsi, which promotes rooftop solar in Ypsilanti. 

“If they have a cap and we reach that cap, then rooftop solar is shut down in Michigan,” he said. “The utilities don’t mind solar as long as they own it, and that’s what it boils down to.”  

The state’s utilities see the situation differently. Spokespeople for DTE and Consumers told the Energy News Network that lifting the cap would shift the cost burden of maintaining their territory-wide infrastructure from all customers to low income customers who can’t afford to install solar panels, often invoking reliability examples such as California's reliance on fossil generation to justify caution.

The bill “doesn’t address the subsidy certain customers are paid at the expense of those who cannot afford to put solar panels on their homes,” said Katie Carey, Consumers Energy’s spokesperson. 

However, clean energy advocates argue that studies have found that to be untrue. And even if it were true, Rabhi said, the utilities told lawmakers in 2016 that a new inflow/outflow tariff that the companies successfully pushed for to replace net metering dramatically reduced compensation for home solar users and would address that inequality. 

“DTE’s and Consumers’ own argument is that by making that change, distributed generation is no longer a ‘burden’ on low income customers, so now we have inflow/outflow and the problem should be solved,” Rabhi said. 

He added that claims that DTE and Consumers are looking out for low-income customers are disingenuous because they have repeatedly fought larger allowances for programs that help those customers, and refuse to “dip into their massive corporate profits and make sure poor people don’t have to pay as much for electricity.”

“I don’t want to hear a sob story from DTE about how putting solar panels on the house is going to hurt poor people,” he said. “That is entirely the definition of hypocrisy — that’s the utilities using poor people as a pawn and that’s why people are sick of these corporations.” 

The companies have already begun their public relations attack designed to help thwart the bill. DTE and Consumers spread money generously among Republicans and Democrats in the Legislature each cycle, and the two companies’ dark money nonprofits launched a round of ads targeting Democratic lawmakers, reflecting the broader solar wars playing out nationally. Several sit on the House Energy Committee, which must approve the bill before it can go in front of the full Legislature. 

The DTE-backed Alliance For Michigan Power and Consumers Energy-funded Citizens Energizing Michigan’s Economy have purchased dozens of Facebook ads alluding to action by the legislators, though there hasn’t been a vote. 

Facebook ads aren’t uncommon as they get “bang for their buck,” said Matt Kasper, research director with utility industry watchdog Energy And Policy Institute. Already hundreds of thousands of people have potentially viewed the ads and the groups have only spent thousands of dollars. The ads are likely designed to get Facebook users to interact with the legislators on the issue, Kasper said, even if there’s little information in the ad, and the info in the ad that does exist is highly misleading.

DTE and Consumers spokespersons declined to comment on the spending and directed questions to the dark money nonprofits. No one there could be reached for comment.

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Electric Car Motors convert electricity to torque via rotor-stator magnetic fields, using AC/DC inverters, permanent magnets or induction designs; they power EV powertrains efficiently and enable regenerative braking for energy recovery and control.

Key Points

Electric car motors turn electrical energy into wheel torque using rotor-stator fields, inverters, and AC or DC control.

✅ AC induction, PMSM, BLDC, and reluctance architectures explained

✅ Inverters manage AC/DC, voltage, and motor speed via frequency

✅ Regenerative braking recovers energy and reduces wear

When was the last time you stopped to think about how electric cars actually work, especially if you're wondering whether to buy an electric car today? We superfans of the car biz have mostly developed a reasonable understanding of how combustion powertrains work. Most of us can visualize fuel and air entering a combustion chamber, exploding, pushing a piston down, and rotating a crankshaft that ultimately turns the wheels. We generally understand the differences between inline, flat, vee-shaped, and maybe even Wankel rotary combustion engines.

Mechanical engineering concepts such as these are comparatively easy to comprehend. But it's probably a fair bet to wager that only a minority of folks reading this can explain on a bar napkin exactly how invisible electrons turn a car's wheels or how a permanent-magnet motor differs from an AC induction one. Electrical engineering can seem like black magic and witchcraft to car nuts, so it's time to demystify this bold new world of electromobility, with the age of electric cars arriving ahead of schedule.

How Electric Cars Work: Motors
It has to do with magnetism and the natural interplay between electric fields and magnetic fields. When an electrical circuit closes allowing electrons to move along a wire, those moving electrons generate an electromagnetic field complete with a north and a south pole. When this happens in the presence of another magnetic field—either from a different batch of speeding electrons or from Wile E. Coyote's giant ACME horseshoe magnet, those opposite poles attract, and like poles repel each other.

Electric motors work by mounting one set of magnets or electromagnets to a shaft and another set to a housing surrounding that shaft. By periodically reversing the polarity (swapping the north and south poles) of one set of electromagnets, the motor leverages these attracting and repelling forces to rotate the shaft, thereby converting electricity into torque and ultimately turning the wheels, in a sector where the electric motor market is growing rapidly worldwide. Conversely—as in the case of regenerative braking—these magnetic/electromagnetic forces can transform motion back into electricity.

How Electric Cars Work: AC Or DC?
The electricity supplied to your home arrives as alternating current (AC), and bidirectional charging means EVs can power homes for days as needed, so-called because the north/south or plus/minus polarity of the power changes (alternates) 60 times per second. (That is, in the United States and other countries operating at 110 volts; countries with a 220-volt standard typically use 50-Hz AC.) Direct current (DC) is what goes into and comes out of the + and - poles of every battery. As noted above, motors require alternating current to spin. Without it, the electromagnetic force would simply lock their north and south poles together. It's the cycle of continually switching north and south that keeps a motor spinning.

Today's electric cars are designed to manage both AC and DC energy on board. The battery stores and dispenses DC current, but again, the motor needs AC. When recharging the battery, and with increasing grid coordination enabling flexibility, the energy comes into the onboard charger as AC current during Level 1 and Level 2 charging and as DC high-voltage current on Level 3 "fast chargers." Sophisticated power electronics (which we will not attempt to explain here) handle the multiple onboard AC/DC conversions while stepping the voltage up and down from 100 to 800 volts of charging power to battery/motor system voltages of 350-800 volts to the many vehicle lighting, infotainment, and chassis functions that require 12-48-volt DC electricity.

How Electric Cars Work: What Types Of Motors?
DC Motor (Brushed): Yes, we just said AC makes the motor go around, and these old-style motors that powered early EVs of the 1900s are no different. DC current from the battery is delivered to the rotor windings via spring-loaded "brushes" of carbon or lead that energize spinning contacts connected to wire windings. Every few degrees of rotation, the brushes energize a new set of contacts; this continually reverses the polarity of the electromagnet on the rotor as the motor shaft turns. (This ring of contacts is known as the commutator).

The housing surrounding the rotor's electromagnetic windings typically features permanent magnets. (A "series DC" or so-called "universal motor" may use an electromagnetic stator.) Advantages are low initial cost, high reliability, and ease of motor control. Varying the voltage regulates the motor's speed, while changing the current controls its torque. Disadvantages include a lower lifespan and the cost of maintaining the brushes and contacts. This motor is seldom used in transportation today, save for some Indian railway locomotives.

Brushless DC Motor (BLDC): The brushes and their maintenance are eliminated by moving the permanent magnets to the rotor, placing the electromagnets on the stator (housing), and using an external motor controller to alternately switch the various field windings from plus to minus, thereby generating the rotating magnetic field.

Advantages are a long lifespan, low maintenance, and high efficiency. Disadvantages are higher initial cost and more complicated motor speed controllers that typically require three Hall-effect sensors to get the stator-winding current phased correctly. That switching of the stator windings can result in "torque ripple"—periodic increases and decreases in the delivered torque. This type of motor is popular for smaller vehicles like electric bikes and scooters, and it's used in some ancillary automotive applications like electric power steering assist.

Permanent-Magnet Synchronous Motor (PMSM): Physically, the BLDC and PMSM motors look nearly identical. Both feature permanent magnets on the rotor and field windings in the stator. The key difference is that instead of using DC current and switching various windings on and off periodically to spin the permanent magnets, the PMSM functions on continuous sinusoidal AC current. This means it suffers no torque ripple and needs only one Hall-effect sensor to determine rotor speed and position, so it's more efficient and quieter.

The word "synchronous" indicates the rotor spins at the same speed as the magnetic field in the windings. Its big advantages are its power density and strong starting torque. A main disadvantage of any motor with spinning permanent magnets is that it creates "back electromotive force" (EMF) when not powered at speed, which causes drag and heat that can demagnetize the motor. This motor type also sees some duty in power steering and brake systems, but it has become the motor design of choice in most of today's battery electric and hybrid vehicles.

Note that most permanent-magnet motors of all kinds orient their north-south axis perpendicular to the output shaft. This generates "radial (magnetic) flux." A new class of "axial flux" motors orients the magnets' N-S axes parallel to the shaft, usually on pairs of discs sandwiching stationary stator windings in between. The compact, high-torque axial flux orientation of these so-called "pancake motors" can be applied to either BLDC or PMSM type motors.

AC Induction: For this motor, we toss out the permanent magnets on the rotor (and their increasingly scarce rare earth materials) and keep the AC current flowing through stator windings as in the PMSM motor above.

Standing in for the magnets is a concept Nikola Tesla patented in 1888: As AC current flows through various windings in the stator, the windings generate a rotating field of magnetic flux. As these magnetic lines pass through perpendicular windings on a rotor, they induce an electric current. This then generates another magnetic force that induces the rotor to turn. Because this force is only induced when the magnetic field lines cross the rotor windings, the rotor will experience no torque or force if it rotates at the same (synchronous) speed as the rotating magnetic field.

This means AC induction motors are inherently asynchronous. Rotor speed is controlled by varying the alternating current's frequency. At light loads, the inverter controlling the motor can reduce voltage to reduce magnetic losses and improve efficiency. Depowering an induction motor during cruising when it isn't needed eliminates the drag created by a permanent-magnet motor, while dual-motor EVs using PMSM motors on both axles must always power all motors. Peak efficiency may be slightly greater for BLDC or PMSM designs, but AC induction motors often achieve higher average efficiency. Another small trade-off is slightly lower starting torque than PMSM. The GM EV1 of the mid-1990s and most Teslas have employed AC Induction motors, despite skepticism about an EV revolution in some quarters.

Reluctance Motor: Think of "reluctance" as magnetic resistance: the degree to which an object opposes magnetic flux. A reluctance motor's stator features multiple electromagnet poles—concentrated windings that form highly localized north or south poles. In a switched reluctance motor (SRM), the rotor is made of soft magnetic material such as laminated silicon steel, with multiple projections designed to interact with the stator's poles. The various electromagnet poles are turned on and off in much the same way the field windings in a BLDC motor are. Using an unequal number of stator and rotor poles ensures some poles are aligned (for minimum reluctance), while others are directly in between opposite poles (maximum reluctance). Switching the stator polarity then pulls the rotor around at an asynchronous speed.

A synchronous reluctance motor (SynRM) doesn't rely on this imbalance in the rotor and stator poles. Rather, SynRM motors feature a more distributed winding fed with a sinusoidal AC current as in a PMSM design, with speed regulated by a variable-frequency drive, and an elaborately shaped rotor with voids shaped like magnetic flux lines to optimize reluctance.

The latest trend is to place small permanent magnets (often simpler ferrite ones) in some of these voids to take advantage of both magnetic and reluctance torque while minimizing cost and the back EMF (or counter-electromotive force) high-speed inefficiencies that permanent-magnet motors suffer.

Advantages include lower cost, simplicity, and high efficiency. Disadvantages can include noise and torque ripple (especially for switched reluctance motors). Toyota introduced an internal permanent-magnet synchronous reluctance motor (IPM SynRM) on the Prius, and Tesla now pairs one such motor with an AC induction motor on its Dual Motor models. Tesla also uses IPM SynRM as the single motor for its rear-drive models.

Electric motors may never sing like a small-block or a flat-plane crank Ferrari. But maybe, a decade or so from now, we'll regard the Tesla Plaid powertrain as fondly as we do those engines, even as industry leaders note that mainstream adoption faces hurdles, and every car lover will be able to describe in intimate detail what kind of motors it uses.
 

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CAISO Renewable Curtailments reflect grid balancing under transmission congestion and oversupply, reducing solar and wind output while leveraging WEIM trading, battery storage, and transmission expansion to integrate renewables and stabilize demand-supply.

Key Points

CAISO renewable curtailments are reductions in wind and solar output to balance grid amid congestion or oversupply.

✅ Driven mainly by transmission congestion, less by oversupply.

✅ Peaks in spring when demand is low and solar output is high.

✅ Mitigated by WEIM trades, new lines, and battery storage growth.

The California Independent System Operator (CAISO), the grid operator for most of the state, is increasingly curtailing solar- and wind-powered electricity generation, as reported in rising curtailments, as it balances supply and demand during the rapid growth of wind and solar power in California.

Grid operators must balance supply and demand to maintain a stable electric system as advances in solar and wind continue to scale. The output of wind and solar generators are reduced either through price signals or rarely, through an order to reduce output, during periods of:

Congestion, when power lines don’t have enough capacity to deliver available energy
Oversupply, when generation exceeds customer electricity demand

In CAISO, curtailment is largely a result of congestion. Congestion-related curtailments have increased significantly since 2019 because California's solar boom has been outpacing upgrades in transmission capacity.

In 2022, CAISO curtailed 2.4 million megawatthours (MWh) of utility-scale wind and solar output, a 63% increase from the amount of electricity curtailed in 2021. As of September, CAISO has curtailed more than 2.3 million MWh of wind and solar output so far this year, even as the US project pipeline is dominated by wind, solar, and batteries.

Solar accounts for almost all of the energy curtailed in CAISO—95% in 2022 and 94% in the first seven months of 2023. CAISO tends to curtail the most solar in the spring when electricity demand is relatively low (because moderate spring temperatures mean less demand for space heating or air conditioning) and solar output is relatively high, although wildfire smoke impacts can reduce available generation during fire season as well.

CAISO has increasingly curtailed renewable generation as renewable capacity has grown in California, and the state has even experienced a near-100% renewables moment on the grid in recent years. In 2014, a combined 9.0 gigawatts (GW) of wind and solar capacity had been built in California. As of July 2023, that number had grown to 17.6 GW. Developers plan to add another 3.0 GW by the end of 2024.

CAISO is exploring and implementing various solutions to its increasing curtailment of renewables, including:

The Western Energy Imbalance Market (WEIM) is a real-time market that allows participants outside of CAISO to buy and sell energy to balance demand and supply. In 2022, more than 10% of total possible curtailments were avoided by trading within the WEIM. A day ahead market is expected to be operational in Spring 2025.

CAISO is expanding transmission capacity to reduce congestion. CAISO’s 2022–23 Transmission Planning Process includes 45 transmission projects to accommodate load growth and a larger share of generation from renewable energy sources.

CAISO is promoting the development of flexible resources that can quickly respond to sudden increases and decreases in demand such as battery storage technologies that are rapidly becoming more affordable. California has 4.9 GW of battery storage, and developers plan to add another 7.6 GW by the end of 2024, according to our survey of recent and planned capacity changes. Renewable generators can charge these batteries with electricity that would otherwise have been curtailed.

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Canada Distributed Energy faces disruption as solar, smart grids, microgrids, and storage scale utility-scale renewables, challenging centralized utilities and accelerating decarbonization, grid modernization, and distributed generation across provinces like Alberta.

Key Points

Canada Distributed Energy shifts from centralized grids to local solar, wind, and storage for reliable low-carbon power.

✅ Morgan Solar and Enbridge launch Alberta Solar One, 13.7 MW.

✅ Optical films boost panel efficiency, lowering cost per watt.

✅ Strong utilities slow adoption of microgrids and smart grids.

By Nick Waddell

Disruption is coming to electricity generation but Canada has become a laggard when it comes to not just adoption of alternative energy sources but in moving to a more distributed model of electricity generation. That’s according to Mike Andrade, CEO of Morgan Solar, whose new solar project in conjunction with Enbridge has just come online in Alberta, a province known as a powerhouse for both green and fossil energy in Canada.

“There’s a lot of inertia to Canada’s electrical system and I don’t think that bodes well,” said Andrade, who spoke on BNN Bloomberg on Thursday. 

“Canada is one of the poorest places for uptake of solar, as NEB data on solar demand indicates,” Andrade said, “I believe a lot of it has to do with the fact that we have strong provincial utilities that have their mandates and their chosen technologies.”

Alberta Solar One, a 13.7 MW power facility near Lethbridge, Alberta, had its unveiling this week amid red-hot solar growth in Alberta that shows no sign of slowing. It’s a 36,500-panel farm constructed by Enbridge in a quick six-month turnaround as part of the power company’s pledge to become a carbon-free generator by 2050. Along with solar, Enbridge has made big investments in offshore and onshore wind farms in the United States, while also producing so-called green hydrogen at an Ontario plant.

Private company Morgan Solar considers the Alberta Solar One project as the first utility-scale validation of its technology, which uses optical films to redirect light onto photovoltaic cells to further power production. 

“We use an advanced modelling system and a variety of tools to design very simple optical systems that can be easily inserted into a panel,” Andrade said. “They cost less and bring down the cost per watt. It captures light that would otherwise miss the cells and so you get more power per cell area than any other commercial technology at this point.”

Like renewables in general, solar energy has been thrust into the spotlight as governments worldwide aim to make good on their climate change and emissions pledges, with analyses showing zero-emissions electricity by 2035 is possible in Canada, and convert power generation from fossil fuels to alternative sources. 

The market has paid attention, too, driving up values on renewable energy stocks across the board, including solar stocks, as provinces like Alberta explore selling renewable energy into broader markets. Last year, the Invesco Solar ETF, which tracks the MAC Global Solar Energy Index, soared 234 per cent, while Canadian companies with solar assets like Algonquin Power and Northland Power have been winners over the past few years.

Canadian cleantech companies involved in the solar power sector have also fared well, with names like UGE International (UGE International Stock Quote, Chart, News, Analyst. Financials TSXV:UGE), Aurora Solar and 5N Plus (5N Plus Stock Quote, Chart, News, Analysts, Financials TSX:VNP) having attracted investor attention of late.

Currently, part of the push in alternative energy involves the move from centralized to a more distributed picture of power generation, where solar panels, wind turbines and small modular nuclear reactors can operate close to or within sources of consumption like cities.

But Andrade says Canada has a lot of catching up to do on that front, especially as its current system seems devoted to maintaining the precedence of large, centralized power production — along with the utility companies that generate it.

“Canada is going to be left with this big, old fashioned hub and spoke model, and that’s increasingly going to be out-competed by a distributed grid, call them smart grids or micro grids,” Andrade said.

“That’s the future that solar is going to drive along with storage, and I personally don’t think Canada is prepared for it, not because we can’t do it but because regulatory and incumbency is holding us back from doing that,” he said.

“We pay our utilities, saying, ‘You invest capital and we’ll give you a fixed return on capital.’ Well, guess what? You’re going to get large, centralized capital projects which are going to get big central generation hub and spoke distribution,” Andrade said.

Ahead of the Canadian federal government’s tabling next week of its first budget in two years, many in the energy sector will be taking notes on the Liberal government’s investments in the so-called green recovery after the economic downturn, with renewable energy proponents hoping for further support, noting Alberta’s renewable energy surge could power thousands of jobs, to shift Canada’s resource sector away from fossil fuels.

By comparison, President Biden in the US recently unveiled his $2-billion infrastructure plan which put precedence on greening the country’s power grid, encouraging the adoption of electric vehicles and supporting renewable resource development, and Canadian studies suggest 2035 zero-emission power is practical and profitable as well across the national grid. 

On disruption in power generation, Andrade said there are parallels to be drawn from information technology, which has historically made a point of discarded outdated models along the way.

“I was at IBM, and they had the mainframe business and that got blown up. I also worked with Nortel and Celestica and they got blown up —and it wasn’t due to having better central hub and spoke systems. They got beat up by this distributed system,” Andrade said. 

“The same thing is going to happen here and the disruption is coming in electricity generation as well,” he said.

About The Author - Nick Waddell

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.

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US Renewable Energy Capacity 2023 leads new utility-scale additions, with solar, wind, and battery storage surging; EIA data cite tax incentives, lower costs, and smart grid upgrades driving grid reliability and decarbonization.

Key Points

In 2023, renewables dominate new US utility-scale capacity: 54% solar, 7.1 GW wind, 8.6 GW battery storage, per EIA.

✅ 54% of 2023 US additions are solar, a record year

✅ 7.1 GW wind and 8.6 GW batteries expand grid resources

✅ Storage, smart grids, incentives boost reliability and growth

Wind, solar, and batteries make up 82% of 2023’s expected new utility-scale power capacity in the US, highlighting wind power's surge alongside solar and storage, according to the US Energy Information Administration’s (EIA) “Preliminary Monthly Electric Generator Inventory.”

As of January 2023, the US was operating 73.5 gigawatts (GW) of utility-scale solar capacity, which aligns with rising solar generation trends across the US – about 6% of the country’s total.

But solar makes up just over half of new US generating capacity expected to come online in 2023, supported by favourable government plans across key markets. And if it all goes as expected, it will be the most solar capacity added in a single year in the US. It will also be the first year that more than half of US capacity additions are solar, underscoring solar's No. 3 renewable ranking in the U.S. mix.

As of January 2023, 141.3 GW of wind capacity was operating in the US, reflecting wind's status as the most-used renewable nationwide – about 12% of the US total. Another 7.1 GW are planned for 2023. Tax incentives, lower wind turbine construction costs, and new renewable energy targets are spurring the growth. 

And developers also plan to add 8.6 GW of battery storage power capacity to the grid this year, supporting record solar and storage buildouts across the market, and that’s going to double total US battery power capacity.

However, differences in the amount of electricity that different types of power plants can produce mean that wind and solar made up about 17% of the US’s utility-scale capacity in 2021, but produced 12% of electricity, even as renewables surpassed coal nationally in 2022. Solutions such as energy storage, smart grids, and infrastructure development will help bridge that gap.

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U.S. Solar Panel Shipments 2021 surged to 28.8 million kW of PV modules, tracking utility-scale and small-scale capacity additions, driven by imports from Asia, resilient demand, supply chain constraints, and declining prices.

Key Points

Record 28.8M kW PV modules shipped in 2021; 80% imports; growth in utility- and small-scale capacity with lower prices.

✅ 28.8M kW shipped, up from 21.8M kW in 2020 (record capacity)

✅ 80% of PV module shipments were imports, mainly from Asia

✅ Utility-scale +13.2 GW; small-scale +5.4 GW; residential led

U.S. shipments of solar photovoltaic (PV) modules (solar panels) rose to a record electricity-generating capacity of 28.8 million peak kilowatts (kW) in 2021, from 21.8 million peak kW in 2020, based on data from our Annual Photovoltaic Module Shipments Report. Continued demand for U.S. solar capacity drove this increase in solar panel shipments in 2021, as solar's share of U.S. electricity continued to rise.

U.S. solar panel shipments include imports, exports, and domestically produced and shipped panels. In 2021, about 80% of U.S. solar panel module shipments were imports, primarily from Asia, even as a proposed tenfold increase in solar aims to reshape the U.S. electricity system.

U.S. solar panel shipments closely track domestic solar capacity additions; differences between the two usually result from the lag time between shipment and installation, and long-term projections for solar's generation share provide additional context. We categorize solar capacity additions as either utility-scale (facilities with one megawatt of capacity or more) or small-scale (largely residential solar installations).

The United States added 13.2 gigawatts (GW) of utility-scale solar capacity in 2021, an annual record and 25% more than the 10.6 GW added in 2020, according to our Annual Electric Generator Report. Additions of utility-scale solar capacity reached a record high, reflecting strong growth in solar and storage despite project delays, supply chain constraints, and volatile pricing.

Small-scale solar capacity installations in the United States increased by 5.4 GW in 2021, up 23% from 2020 (4.4 GW), as solar PV and wind power continued to grow amid favorable government plans. Most of the small-scale solar capacity added in 2021 was installed on homes. Residential installations totaled more than 3.9 GW in 2021, compared with 2.9 GW in 2020.

The cost of solar panels has declined significantly since 2010. The average value (a proxy for price) of panel shipments has decreased from $1.96 per peak kW in 2010 to $0.34 per peak kW in 2021, as solar became the third-largest renewable source and markets scaled. Despite supply chain constraints and higher material costs in 2021, the average value of solar panels decreased 11% from 2020.

In 2021, the top five destination states for U.S. solar panel shipments were:

California (5.09 million peak kW)
Texas (4.31 million peak kW)
Florida (1.80 million peak kW)
Georgia (1.15 million peak kW)
Illinois (1.12 million peak kW)
These five states accounted for 46% of all U.S. shipments, and 2023 utility-scale project pipelines point to continued growth.

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