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TL;DR: In recent years, the energy landscape has undergone significant shifts, with both solar and nuclear power gaining prominence. Last year, the United States experienced a remarkable surge in solar energy, installing a record-breaking 50 gigawatts of new solar capacity – the largest single-year addition to the grid by any energy technology in over two decades. At the same time, interest in nuclear power is growing, particularly among tech giants. A key example of this trend is Amazon, Google, and Meta pledging to support efforts to at least triple global nuclear energy capacity by 2050.
According to the US Solar Market Insight 2024 Year in Review report by the Solar Energy Industries Association (SEIA) and Wood Mackenzie, solar and storage together accounted for 84 percent of all new electric generating capacity added to the grid last year. The 50 GW of new capacity was enough to power approximately 8.5 million households.
This growth was accompanied by a significant expansion in domestic solar manufacturing, with module production tripling in 2024. At full capacity, US factories can now meet nearly all domestic demand for solar panels, substantially strengthening the nation’s energy supply chain. Additionally, solar cell manufacturing resumed in 2024, further bolstering domestic production.
Texas led the nation in new solar capacity additions, installing 11.6 GW, while 21 states set new annual records, and 13 states added over 1 GW of new capacity. The utility-scale segment saw a 33 percent year-over-year increase, reaching a record 41.4 GW of installed capacity.
Both community and commercial solar markets also hit record highs, growing by 35% percent and eight percent, respectively.
However, the residential solar market saw its weakest year since 2021 due to policy changes and high interest rates, though projections suggest a rebound over the next decade.
Despite these achievements, the solar industry faces significant challenges, particularly policy uncertainties that could impact future growth. Changes in federal tax credits, supply chain constraints, and permitting policies may slow solar deployment, potentially leading to a $250 billion loss in investment over the next decade. Such setbacks could have far-reaching implications for the US energy sector and economic growth.
Meanwhile, new developments in nuclear energy highlight the growing demand for this power source, particularly Amazon, Google, and Meta’s recent pledge, facilitated by the World Nuclear Association. This commitment aligns with a broader initiative initially backed by over 20 countries, including the US, during the UN Climate Change Conference in December 2023. Financial institutions such as Bank of America, Goldman Sachs, and Morgan Stanley have also endorsed this goal.
The tech sector’s interest in nuclear energy stems from its need for reliable, consistent power to support expanding data centers and artificial intelligence operations. While renewables like solar are essential for reducing carbon emissions, they may not provide the continuous power required for these energy-intensive systems.
Amazon and Google have already begun investing in small modular reactors, a technology that could lower costs and shorten deployment timelines compared to traditional nuclear reactors. Meanwhile, Meta has issued a call for proposals to add up to 4 GW of new nuclear power in the US.
As the world seeks to balance environmental goals with economic growth and energy security, solar and nuclear power will likely play critical roles. Successfully integrating these energy sources will be essential for meeting rising electricity demand while reducing carbon emissions.
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