U.S. Solar Manufacturing Investment Hits $12.2B, Capacity Reaches 75.3 GW, Prices Rise on Tariffs

U.S. solar manufacturing is scaling up fast. New research from Terawatt PV Research shows cumulative investment in domestic solar factories will hit $12.2 billion by end of 2026, driven by the Inflation Reduction Act. Module capacity now stands at 75.3 GW with another 14.4 GW under construction. Texas and the Southeast are emerging as major manufacturing hubs as companies like First Solar and Qcells expand operations. Meanwhile, utility-scale solar demand remains strong with 11.4 GW installed in Q2 2026, but residential installs are expected to drop 23% after the federal tax credit expired. New tariffs and minimum import prices are pushing module costs higher, which could support domestic production but also raise project costs. The full report from Wood Mackenzie and SEIA breaks down the numbers.