The U.S. solar industry is on an extraordinary trajectory. In 2024, the country added a record 40 GW of new solar capacity, a 55% jump from the prior year, according to the SEIA. Looking ahead, the U.S. Dept. of Energy forecasts that solar could account for as much as 40% of the nation’s electricity supply by 2035.
Yet rapid growth has exposed the fragility of the supply chain underpinning this expansion. For all the headlines celebrating new gigawatts deployed, industry leaders remain concerned about one critical issue: resilience.
The Supply Chain Challenge
Credit: GREW Solar
More than 80% of the world’s solar modules are manufactured in Asia, with China holding the lion’s share. India and other emerging manufacturers have scaled production in recent years, but the overall ecosystem remains heavily concentrated. This geographic concentration leaves the United States exposed to shipping delays, component shortages, natural disasters and other disruptions.
These bottlenecks are already affecting project timelines. Developers report delays tied to module availability, logistics costs and regulatory shifts. For instance, SEIA notes that some utility-scale projects faced months-long delays in 2024 due to slow customs clearance and port congestion. A 2023 report from the National Renewable Energy Laboratory (NREL) underscores that supply chain disruptions could jeopardize the U.S. target of achieving a carbon-free power sector by 2035 if diversification is not pursued.
The situation presents a paradox: demand for solar has never been higher, yet the ability to meet it depends on a supply chain stretched across continents and subject to multiple points of risk.
Market Dynamics and Data
The challenge is not just theoretical. In 2024, the United States imported over 54 GW of finished solar panels, exceeding the domestic installations planned for the year (~40 GW). Meanwhile, U.S. silicon module manufacturers likely only produced 4.2 GW in the first half of 2024. This gap between domestic capacity and total market demand highlights the critical importance of diversified, reliable sourcing.
Module pricing trends further illustrate the stakes. Distributed generation module prices rose from roughly $0.25/W at the start of 2024 to about $0.28/W by mid-year, before stabilizing around $0.27/W. Q2 2024 U.S. module prices remained ~190% above global spot prices, reflecting the premium paid for supply certainty and reliability.
If left unaddressed, these supply pressures could slow deployment, increase costs, and limit the country’s ability to meet aggressive clean energy goals.
Diversification as a Strategy
The solution lies in diversification. The United States needs a steady, reliable flow of modules to keep pace with demand, which requires broadening the supplier base. Sourcing from multiple regions can reduce exposure to single points of failure and minimize the risk of project delays.
Diversification also provides a hedge against a wide range of risks. If one region experiences production slowdowns due to logistics bottlenecks, natural disasters, or geopolitical shifts, other suppliers can step in to fill the gap. This flexibility is essential for an industry tasked with delivering clean, reliable energy at scale.
Moreover, diversification encourages healthy competition among suppliers, incentivizing innovation, improving quality and driving efficiency — all of which strengthen the long-term resilience of the U.S. solar market.
Building a Sustainable Market for the Long Term
Solar supply chain resilience is not just a short-term necessity — it is a long-term imperative. The International Energy Agency projects that global solar PV capacity must triple by 2030 to stay on track for net-zero targets. The surge in demand will strain module production and distribution networks, making strategic sourcing and planning critical.
Without diversification, the United States risks competing with other nations for limited resources, driving up costs and slowing deployment just when speed is most needed. A more resilient supply chain strengthens energy security while supporting a competitive market, benefiting developers, utilities and ultimately consumers.
Supply chain resilience also supports broader grid reliability and investment confidence. Developers and financiers are more likely to commit to projects when module supply is predictable and backed by a diversified network of trusted sources.
Preparing for Future Growth
Moving forward, building resilience requires coordinated action across several fronts:
- Policy alignment that supports domestic manufacturing while maintaining access to reliable international suppliers.
- Industry partnerships that strengthen trade relationships and ensure steady module availability.
- Innovation investments to reduce dependence on any single supply chain chokepoint, from polysilicon refining to advanced module assembly.
- Data-driven forecasting and logistics planning to anticipate potential disruptions and maintain steady project pipelines.
By focusing on these priorities, the U.S. solar industry can ensure that supply chains are flexible, reliable and capable of supporting ambitious growth targets without compromising project economics.
A Shared Responsibility
Supply chain resilience is about more than energy security — it is central to the success of the clean energy transition. Every gigawatt delayed due to shortages represents a missed opportunity to reduce emissions, strengthen the grid, and deliver affordable renewable power to communities.
As the U.S. solar market accelerates toward ambitious goals, one thing is clear: resilience cannot be left to chance. By embracing diversification, strategic planning, and innovation across the supply chain, the industry can build a foundation strong enough to support the next decade of rapid growth and deliver a cleaner, more secure energy future.
A strategic leader with expertise in finance and operations, Mr. Vinay Thadani has been the driving force behind establishing GREW Solar as India’s youngest and fastest growing solar brand. Since joining the Chiripal group in 2017, his journey from CFO and COO at Vishal Fabrics Limited to the Director and CEO of GREW Solar reflects his exceptional ability to drive growth. Mr. Vinay Thadani, ICAI alumnus, merges financial expertise with business development and risk management, to advance sustainable energy solutions.
