The Changing Landscape of US Solar Industry: Solar Panel Imports Drop 46% as Battery Storage Surges

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The United States' solar industry is going through major changes. In late 2024, solar panel imports dropped to their lowest level in two years, while domestic production of solar cells increased, according to S&P Global Commodity Insights. 

At the same time, battery storage capacity is expanding, helping to store and manage solar power more efficiently. These changes are shaping the future of clean energy in the U.S.

Imports Decline as US Solar Production Surges

Between October and December 2024, the US imported 8,057 megawatts (MW) of solar panels, per S&P Global data. This was a sharp 46% drop from the previous quarter and less than half of what was imported during the peak in mid-2024. 

Source: S&P Global

The reason behind this decline is a combination of tariffs, tax incentives, and government policies aimed at boosting American solar manufacturing.

The Inflation Reduction Act (IRA), signed into law in 2022, has encouraged companies to build solar factories in the US. 

• As a result, by early 2025, the country’s solar panel production capacity reached about 51.7 gigawatts (GW), a massive 600% increase since the law was passed.

Rise in Domestic Solar Cell Production 

As solar panel imports declined, imports of unassembled solar cells nearly quadrupled in 2024 to 13.9 GW. In the last quarter of 2024 alone, 4,442 MW of solar cells were imported. This trend suggests that instead of importing fully assembled solar panels, the US is now importing the parts and assembling them domestically.

Countries such as South Korea, Malaysia, Thailand, and Laos have emerged as the top suppliers of solar cells. Meanwhile, the share of imported panels from China has dropped significantly. 

Source: S&P Global

Arizona-based First Solar Inc. became the largest single supplier of solar panels to the U.S. in late 2024, highlighting the growing influence of domestic manufacturers.

Shifting Supply Chains and Policy Uncertainty

Most U.S. solar panel imports come from Southeast Asia, particularly Thailand, Vietnam, Malaysia, and Laos. However, tariffs imposed in 2023 on Cambodia, Malaysia, Thailand, and Vietnam have disrupted supply chains. 

The U.S. government found that some Chinese companies were using these countries to avoid tariffs. As a result, Laos and Indonesia have become bigger players in supplying panels to the country.

Amid all this uncertainty, a rising industry player, SolarBank Corporation (NASDAQ: SUUN), offers a promising solution. 

SolarBank's Perspective on U.S. Solar Tariffs

SolarBank, a key player in the renewable energy sector, remains confident despite the shifting tariff landscape. The company tackles trade disputes by focusing on domestic manufacturing, avoiding tariff-related costs while strengthening the U.S. solar supply chain.

CEO Dr. Richard Lu emphasized this strategy, stating, 

“SolarBank has always been focused on the development of projects in the United States that provide clean energy to support communities. The recently announced tariffs on Canada, Mexico, and China are not expected to have an impact on our business. In particular, our recently announced $49.8 million transaction with Qcells will see four projects developed with ‘Made in America’ solar panels. SolarBank believes it can navigate supply chain issues to continue to develop projects with positive economics.”

To mitigate risks associated with tariffs, SolarBank is actively exploring ways to adapt. The company is focused on securing solar panels made in the U.S. This aligns with policies that promote local production. SolarBank partners with suppliers like Qcells. This helps them follow trade rules and support jobs in American manufacturing.

Qcells is a subsidiary of South Korea’s Hanwha Solutions. Through an affiliate, Qcells has agreed to acquire 4 solar power projects in upstate New York.

The projects—Gainesville, Hardie, Rice Road, and Hwy 28—are ground-mounted solar installations currently in development. It has a total capacity of 25.577 MW. The combined value of the sale is estimated at over $49 million.

SolarBank stays ready to grow by keeping a flexible approach and focusing on local partnerships. This helps them navigate the changing rules. The company can still develop profitable projects despite supply chain issues. This shows its strength in the shifting U.S. solar market.

SolarBank’s approach ensures stability and growth in the evolving solar market.

However, recent news reports on President Donald Trump’s sweeping moves suggest that some clean energy subsidies may be reduced or eliminated. This uncertainty makes it difficult for manufacturers and developers to plan long-term investments in the solar industry.

For instance, the Environmental Protection Agency's decision to shut down its $20 billion Greenhouse Gas Reduction Fund raises concerns for the industry. A major chunk of this fund, $7 billion, has been allotted to solar.

• SEE MORE: Trump’s EPA Cancels $20 Billion in Climate Funding: What It Means for Clean Energy

Alongside the growth in domestic solar production is the rise of battery energy storage systems (BESS). S&P Global also reported positive results for this industry. 

Powering Up: The Rise of Battery Storage

The rapid growth of solar power requires strong energy storage systems to balance electricity supply and demand. In early 2025, nearly 18.9 GW of new battery storage capacity was under construction in the US. 

If these projects are completed as planned, they will surpass the 11 GW of battery capacity installed in 2024.

Source: S&P Global

The US Energy Information Administration (EIA) predicts that 18.2 GW of large-scale battery storage will come online in 2025. This means batteries will account for 29% of all new electricity generation capacity this year, making them the second-largest energy resource added to the grid after solar power.

How Battery Storage Supports Solar Energy 

Most of the battery storage projects being built in the U.S. are lithium-ion systems that can store electricity for up to 4 hours. These batteries help store excess solar energy during the day and release it when the sun is not shining.

Some of the largest battery projects in 2024 included:

• Nova Power Bank Project in California: 620 MW of battery storage added, with another 60 MW under construction.
• Gemini Battery Storage Project in Nevada: 380 MW of battery storage built alongside a 690 MW solar farm.
• Atrisco Battery Storage Project in New Mexico: 300 MW of storage paired with a 360 MW solar project.

More than 80 battery projects, each with a capacity of at least 100 MW, are currently under construction across the US. These projects are mainly concentrated in California, Texas, Nevada, and Arizona, with additional clusters in the Northeast and Northwest.

• RELATED: From Waste to Watts: SolarBank and Viridi Intend to Transform a Landfill Into a Solar Powerhouse with Battery Storage

Which States Are Leading the Battery Boom?

California has the largest battery storage capacity in the US, with over 12 GW of installed systems. Texas follows with nearly 8.8 GW, while Arizona and Nevada have 2 GW and 1.4 GW, respectively.

However, Texas is set to overtake California in battery storage growth, with 64.3 GW of planned additions—almost twice as much as California’s 33 GW. Other states investing in battery storage include Nevada, Arizona, Oregon, New York, and Indiana.

Source: S&P Global

Globally, the International Energy Agency (IEA) says energy storage must grow 6x by 2030 to reach 1,500 GW for net-zero goals. Batteries will drive 90% of this growth, expanding 14-fold to 1,200 GW.

Source: IEA

Annual battery deployment must rise 25%, with batteries contributing 60% of carbon reductions through EVs, solar PV, and renewable energy integration.

What’s Next for Solar and Storage Industries?

While U.S. solar and battery storage are growing rapidly, challenges remain.

1. Supply Chain Issues: Tariffs and trade restrictions have made it harder for companies to import certain materials, increasing costs for solar projects.
2. Policy Uncertainty: Changes in federal incentives and tax credits could slow down investments in clean energy.
3. Grid Integration: Expanding battery storage is essential for making this power more reliable, but upgrading the electrical grid to handle more batteries requires time and money.

Despite these challenges, the long-term outlook for solar and energy storage remains strong. Government incentives, technological advancements, and increasing demand for clean energy are pushing the industry forward.

With domestic solar manufacturing on the rise and battery storage projects expanding, the U.S. is making progress toward a more sustainable and energy-independent future. However, continued policy support and investment will be crucial to maintaining this momentum and meeting the country’s clean energy goals.

• READ MORE: Global Solar Growth to Stabilize at 493 GW in 2025, Predicts Wood Mackenzie

This report contains forward-looking information. Please refer to the SolarBank press releases entitled: “US$49.5 Million Transaction with Qcells Announced by”

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