Solar Energy Growth Creates New Supply Chain Opportunities for Appalachian Manufacturers

Despite headwinds, the solar market is predicted to continue its rapid growth globally and domestically.

PITTSBURGH, PA, UNITED STATES, December 18, 2025 /EINPresswire.com/ -- The rapid expansion of the solar energy industry is creating growing demand for the components, equipment, and systems that support residential, commercial, and utility-scale solar installations. A new report from the Energy & Manufacturing in Appalachia (EMA) initiative examines how small- and medium-sized Appalachian manufacturers can play a critical role in supplying the solar industry as it scales to meet growing electricity demand across the United States and globally.

The EMA initiative is led by Catalyst Connection, southwestern Pennsylvania’s economic development organization, along with the following regional partners: Alliance for Manufacturing and Technology (AMT), Innovative Manufacturers Center, Magnet, Manufacturers Resource Center, MANTEC, Maryland MEP, Northeastern PA IRC, Northwestern PA IRC, Reimagine Appalachia, and West Virginia University.

“The solar energy market continues its rapid rise, providing reliable and cost-competitive power,” said Petra Mitchell, President and CEO of Catalyst Connection. “Appalachia’s robust manufacturing sector is ready to supply the solar industry with the components it needs, strengthening the domestic supply chains essential to supporting the industry’s continued growth.”

Robust Growth in Solar Energy Industry

Solar energy is one of the fastest-growing sources of electricity globally, driven by falling technology costs, advances in efficiency, and rising demand for clean, reliable power. In the United States, cumulative solar capacity now exceeds 200 gigawatts, with 40.5 GW installed in 2024 alone, and is predicted to reach over 400 GW by 2030. Corporate investments, including long-term power purchase agreements by technology companies seeking clean and reliable energy for data centers and digital infrastructure, are further accelerating new solar projects.

Federal and state investments have helped fuel this growth, including tax incentives, grants, and manufacturing credits, with an increasing focus on domestic production of solar equipment. Even as some federal incentives are phased down, the solar industry has matured to a point where strong market fundamentals and private-sector demand are expected to sustain long-term growth. The U.S. solar equipment market is projected to grow steadily over the next decade, creating opportunities for manufacturers that can supply high-quality, reliable components.

Continued investment in the sector is needed to address headwinds to growth. This includes addressing end-of-life concerns, with more research needed into materials recycling. Public education can overcome misconceptions about solar panel safety. Continued workforce investments are needed to help grow a skilled labor pool. Finally, supply chain and market dependence on China, currently supplying an estimated 80% of panels, poses risks to U.S. solar growth but opportunities for domestic manufacturers.

Manufacturing and Supply Chain Opportunities

EMA’s Energy Overview Segment: Solar report highlights supply chain opportunities across the solar industry, including:

• Structural and mounting systems such as racking, trackers, and foundation components
• Fabricated metal parts, including frames, brackets, enclosures, and supports
• Electrical equipment such as inverters, transformers, wiring, and connectors
• Monitoring and control systems for performance and grid integration
• Energy storage components supporting solar-plus-storage projects

Each solar installation relies on a wide range of fabricated metal products, electrical equipment, and advanced materials, offering multiple entry points for small and medium-sized manufacturers to participate in the growing solar industry. The report also notes that innovations such as bifacial panels, advanced inverters, and integrated battery systems are increasing system performance while expanding the range of components required.

Read the full report.

About Catalyst Connection

Catalyst Connection is a southwestern Pennsylvania economic development organization dedicated to serving manufacturers. For more than 35 years, Catalyst has operated with a focus on powering potential through delivering technical assistance and management consulting services and developing long-standing partnerships across the region. Catalyst maintains a deeply held commitment to modernizing manufacturing and enabling opportunity across business enterprises, individuals, and throughout communities.

Catalyst Connection is supported, in part, by the Pennsylvania Department of Community and Economic Development and the National Institute of Standards and Technology Manufacturing Extension Partnership (NIST MEP). As such, we are an affiliate of the Pennsylvania Industrial Resource Center (IRC) and the MEP National Network in southwestern Pennsylvania.

About the Energy & Manufacturing in Appalachia Initiative

The Energy & Manufacturing in Appalachia (EMA) initiative provides technical assistance and business support to small and medium manufacturers and enterprises in 156 counties of Maryland, New York, Ohio, Pennsylvania, and West Virginia seeking to expand business, production, and jobs in the energy supply chains or to be more energy efficient.

Allison Moux
Catalyst Connection
+1 412-918-4252
email us here
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