U.S. shipments of solar photovoltaic (PV) modules rose to a record electricity-generating capacity of 28.8 million peak kilowatts in 2021, from 21.8 million peak kilowatts in 2020, based on data from U.S. Energy Information Administration’s (EIA) Annual Photovoltaic Module Shipments Report. Continued demand for U.S. solar capacity drove this increase in solar panel shipments in 2021.
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.
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. EIA categorizes solar capacity additions as either utility-scale – facilities with one MW of capacity or more – or small-scale, largely residential solar installations.
The United States added 13.2 GW of utility-scale solar capacity in 2021, an annual record and 25% more than the 10.6 GW added in 2020, according to EIA’s Annual Electric Generator Report. Additions of utility-scale solar capacity reached a record high, 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). 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. 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) and Illinois (1.12 million peak kW). These five states accounted for 46% of all U.S. shipments.
Image: “Solar Panel” by redplanet89 is licensed under CC BY 2.0
