The solar industry in the United States is booming, but domestic manufacturing is still struggling to keep up with the surging demand for solar panels. Despite significant investments in American production, the country continues to rely heavily on imports to meet its clean energy goals. But where exactly are these solar panels coming from, and why is the U.S. still importing so many despite growing domestic capacity?

Domestic production vs. import needs

In theory, U.S. solar manufacturing should be able to fulfill all domestic orders. The nation’s manufacturing facilities—if operating at full capacity—could produce around 50 gigawatts (GW) of solar panels annually. With an estimated 40 GW of solar installations planned for 2024, the numbers suggest that American manufacturers should be able to meet demand without relying on imports. However, the reality is different, says Solar Power World. 

American solar panel manufacturers have not yet reached full operational capacity. In 2024, the U.S. imported more finished solar panels than it needed for an entire year. This discrepancy highlights that while manufacturing capacity exists, it is not yet fully utilized.

To get a clearer picture of this supply chain challenge, Solar Power World examined data from the U.S. International Trade Commission (ITC), which tracks solar panel imports and domestic production figures. The data provides valuable insights into the state of the U.S. solar industry and its reliance on global supply chains.

How many solar panels and cells did the U.S. import in 2024?

To understand the scale of reliance on imports, we need to look at two key categories: solar cells and finished solar panels.

• Solar Cells: Solar cells are the key components used to manufacture solar panels. The U.S. imported approximately 13.89 GW of silicon solar cells in 2024. This number grew over the year as new module assembly facilities came online and required more materials.
  
• Finished Solar Panels: In addition to solar cells, the U.S. imported 54.3 GW of completed solar panels in 2024. This amount exceeded the estimated installation demand of 40 GW, indicating that many developers were stockpiling panels to ensure they had sufficient supplies to meet project deadlines.
  

Why is the U.S. still importing so many panels?

Even though the U.S. has the potential to produce more solar panels, several factors contribute to the high volume of imports:

1. Manufacturing Ramp-Up Takes Time – Many new solar factories have been announced in recent years, but it takes time to establish production lines, hire skilled labor, and optimize operations.
2. Cost Competitiveness – Panels produced overseas, particularly in Southeast Asia, often remain cheaper than U.S.-made alternatives, making them attractive to project developers.
3. Tariff Uncertainty – The U.S. has imposed tariffs on Chinese solar products, leading to a shift in imports from other regions. However, ongoing trade disputes and policy changes create uncertainty, causing developers to secure large supplies in advance.
4. Supply Chain Challenges – Domestic supply chains for critical components like silicon wafers and cells are still developing. Until these supply chains are fully built out, manufacturers must rely on imported materials.

Where is the U.S. getting its solar cells?

Given the various trade policies affecting the solar market, knowing the country of origin for imported solar cells is important. While China once dominated this segment, tariffs and anti-dumping measures have led to a shift toward Southeast Asia.

In 2024, only 490 kilowatts (kW) of solar cells were imported directly from China—a minuscule amount compared to the total imports. Instead, most solar cells now come from countries like Vietnam, Thailand, Malaysia, and Cambodia.

Top countries supplying the U.S. with solar panels

The U.S. sources its solar panels from a handful of key countries. The top four suppliers—Vietnam, Thailand, Malaysia, and Cambodia—are the same countries under investigation in the ongoing anti-dumping and countervailing duty (AD/CVD) cases. However, other nations are also increasing their exports to the U.S.

Here’s a breakdown of where U.S. solar panel imports came from in 2024:

• Vietnam, Thailand, Malaysia, and Cambodia – These four countries remain the largest suppliers of solar panels to the U.S.
• India, Indonesia, and Laos – Imports from these countries are on the rise as the market diversifies to avoid trade restrictions.
• Mexico – The U.S. imported 621.4 megawatts (MW) of panels from Mexico.
• Canada – Canada supplied 122.8 MW of solar panels to the U.S.
• China – Despite tariffs and restrictions, the U.S. still imported 68.3 MW of panels directly from China.

The future of U.S. solar manufacturing

The U.S. is actively working to reduce its dependence on imported solar panels by ramping up domestic production. Several government initiatives and incentives are driving this shift:

1. The Inflation Reduction Act (IRA) – This landmark legislation includes tax credits and subsidies for domestic solar manufacturing, encouraging companies to build and expand production facilities in the U.S.
2. Domestic Content Bonus Credits – Solar projects using a higher percentage of U.S.-made components are eligible for additional tax credits, making domestic panels more attractive.
3. New Factory Announcements – Major companies are investing in U.S.-based solar manufacturing. For example, First Solar has significantly increased its thin-film solar panel production capacity.
4. Solar Cell Production Expansion – Suniva, the only domestic silicon cell manufacturer to come online before the end of 2024, has a 1-GW production capacity that is still ramping up. As more cell production facilities open, reliance on foreign imports will decrease.

A shifting market with growing domestic potential

While the U.S. still relies heavily on imported solar panels, the industry is undergoing a significant transformation. New policies, investments, and manufacturing facilities are paving the way for a more self-sufficient domestic supply chain.

However, challenges remain. Until U.S. manufacturers can consistently produce enough panels to meet demand—and do so at competitive prices—imports from countries like Vietnam, Thailand, Malaysia, and Cambodia will continue to play a vital role in the nation’s clean energy expansion.

For now, keeping an eye on trade policies, domestic production capacity, and the evolving global solar supply chain will be crucial for anyone involved in the renewable energy sector. The road to energy independence may be long, but the U.S. is steadily making progress toward a more sustainable and resilient solar industry.