Solar Energy Growth Slows in the U.S., But Remains Dominant in New Capacity Additions

Despite a 14 percent decrease in installations in 2025, solar energy continues to lead the expansion of power generation capacity in the United States, accounting for more new power than any other technology. This comes as the industry navigates regulatory pressures and shifts in tax policy.

Solar’s Continued Dominance

The U.S. Added 43 gigawatts (GW) of new solar capacity in 2025, marking the fifth consecutive year that solar has been the largest source of new power added to the grid according to the Solar Energy Industries Association (SEIA) and Wood Mackenzie. Combined with battery storage, solar accounted for 79% of all new electricity generation capacity installed during the first year of the current administration.

Regional Growth and Economic Factors

Growth in solar installations was particularly strong in states won by Donald Trump in the 2024 election, with over two-thirds of new solar capacity built in these regions. Texas led the nation with 11 GW of new solar capacity, followed by significant growth in Indiana, Florida, Arizona, Ohio, Utah, and Arkansas.

Despite regulatory pressure and changes to tax policy, the economics of solar remain favorable, driven in part by increasing electricity demand, particularly from data centers. Solar projects can be built more quickly than many other types of power plants, making them an efficient way to expand electricity generation capacity.

U.S. Electricity Grid Overview

The U.S. Electricity grid is a complex network comprising over 7,300 power plants and hundreds of thousands of miles of transmission and distribution lines, serving 145 million customers according to the U.S. Energy Information Administration (EIA). Electricity must be generated as it is used, as large-scale storage capabilities are limited.

In 2019, natural gas accounted for the largest share of U.S. Electricity generation at 38 percent, followed by coal at 23 percent and nuclear at 20 percent. Renewable energy sources contributed approximately 17 percent, with wind power (7.3 percent) surpassing hydropower (6.6 percent) for the first time according to EIA data.

Looking Ahead

Wood Mackenzie and SEIA anticipate the U.S. Will add another 490 GW of solar capacity by 2036, solidifying solar’s role as a key component of the nation’s energy future .