The US solar industry posted significant gains and record installations in the second quarter this year, according to an industry report released on Monday.

The US Solar Market Insight Report prepared by the Solar Energy Industries Association (SEIA) found that the US solar market in the quarter grew by 45 percent over the previous quarter and 116 percent year on year.

The market also saw the best quarter on record for the utility market segment with a record 477 megawatts of utility-scale installations.

The report found that the United States had installed 742 megawatts of solar power in the quarter and now the country has 5,700 megawatts of installed solar capacity in total, enough to supply more than 940,000 households.

"The US solar industry is rapidly growing and creating jobs across America despite the slow economic recovery," said Rhone Resch, president and CEO of SEIA.

"More solar was installed in the US this quarter than in all of 2009," he added.

After growing 71 percent this year, the US solar power industry may grow 21 percent in 2013 and 25 percent to 40 percent a year through 2016, predicted GTM Research, a consulting firm that co-authored the report.

Since markets such as Germany and Italy showed few signs of recovery, China and the United States became the primary growth markets, noted the report.

In addition, the solar power cost is shrinking fast from $15 per watt of electricity generated in the late 1970s, to about 84 cents a watt on average, thanks largely to relatively low-priced modules provided by China-based suppliers.