US solar manufacturing capacity faces funding and verification gaps

While the United States has seen a surge in solar manufacturing announcements, significant portions of this planned capacity remain unverified or unfunded. Data from PV Tech Research indicates that while hundreds of billions of dollars in plans have been unveiled, much of the capacity exists only on paper. Currently, the U.S. has 55.90GW of credible cell manufacturing projects under construction and 41.36GW of module capacity under construction.

Financial analysis suggests a hesitant investment climate. More than 70% of solar manufacturing expansion plans announced over the last 12 to 18 months are currently unfunded or stranded. Forecasted capital expenditure for 2027 is expected to see a year-on-year decline compared to 2026 levels. Much of the recent spending peak in 2024 was driven by two major companies, First Solar and Qcells.

However, Tesla’s large-scale ingot-to-module manufacturing plans in Texas are viewed as a potentially disruptive factor that could significantly boost the sector’s spending outlook and address gaps in the domestic silicon-based value chain.