Solar Power Leads US Energy Additions for Fifth Consecutive Year
The United States has marked a significant milestone in renewable energy, with solar power leading the way as the largest source of new electricity additions for the fifth consecutive year. In 2025, the country installed an impressive 43 gigawatts (GW) of new solar capacity, reaffirming solar’s dominance in the energy sector.
Noteworthy Solar Installations in 2025
According to the “US Solar Market Insight 2025 Year in Review,” prepared by the Solar Energy Industries Association (SEIA) and Wood Mackenzie, solar and energy storage together accounted for 79% of all new electricity generation capacity. In practical terms, this means that nearly four out of every five new power plants built in the US in 2025 were solar or energy storage facilities.
Growth in Republican-leaning States
Interestingly, more than two-thirds of the new solar capacity was installed in states that supported Donald Trump in the 2024 election. Texas again led the national effort, contributing 11 GW of new solar installations. Other states with significant growth included:
- Indiana: 3 GW, a notable increase from 1.6 GW in 2024
- Utah: Experienced a surge in new projects
- Florida, Arizona, Ohio, and Arkansas: All ranked within the top 10 for new solar capacity
In total, 11 states set annual installation records, and 12 states exceeded 1 GW of new solar capacity.
Solar’s Economic Viability
Despite facing regulatory pressures and tax policy changes in 2025, the cost-effectiveness of solar remains robust. Rising electricity demand, particularly from data centers, continues to drive this growth. Solar installations can be executed faster than many other types of power generation, allowing for swift additions to the grid.
Future Projections
Wood Mackenzie and SEIA project that by 2036, the US could add another 490 GW of solar power, bringing the total installed capacity close to 770 GW. Michelle Davis, head of solar at Wood Mackenzie, emphasized solar’s potential to remain the leading source of new power capacity, stating, “Strong demand growth combined with escalating costs of new gas plants will allow solar to remain competitive, even without tax credits.”
The Importance of Policy
Future growth in the solar sector is closely tied to policy initiatives. The report highlights key factors that will influence solar deployment, including:
- Final guidance on Foreign Entity of Concern provisions
- Outcomes of pending trade actions
- Ability of projects to secure necessary permits
Some challenges persist, especially in the residential solar market, partly due to the phasing out of the 30% tax credit at the end of 2025. A restrictive policy environment could potentially hinder solar deployment.
Advancements in Domestic Solar Manufacturing
2025 was also significant for US solar manufacturing. A new wafer manufacturing facility opened in the third quarter, allowing the country to produce every major component of the solar supply chain domestically. The capacity for cell manufacturing continued to grow, while module manufacturing capacity increased by over 50%, reaching 65.5 GW. The ongoing expansion of US solar manufacturing is expected to align with the rising demand for renewable energy.
