The U.S. solar industry added 43 gigawatts of new capacity in 2025, marking its fifth consecutive year as the country’s leading source of new power generation. Solar and energy storage together made up 79 percent of all new capacity installed during the first year of the Trump Administration, demonstrating the sector’s continued strength even amid shifting political and regulatory environments. According to the U.S. Solar Market Insight 2025 Year in Review report released by the Solar Energy Industries Association (SEIA) and Wood Mackenzie, more than two-thirds of all solar capacity added in 2025 was built in states carried by President Trump.
Several states— including Texas, Indiana, Florida, Arizona, Ohio, Utah and Arkansas—ranked among the top ten for solar installations, highlighting the widespread demand for solar power across diverse political and economic regions. Even with regulatory pressure on clean energy and changes to tax policy, solar continues to stand out as one of the most cost-effective and scalable solutions for meeting sharply rising electricity needs. This surge in demand is largely driven by rapid growth in data centers and digital infrastructure. The report projects that the U.S. will add 490 gigawatts of new solar capacity by 2036, bringing total installed capacity close to 770 gigawatts.
Darren Van’t Hof, Interim President and CEO of SEIA, emphasized that both solar and storage remain the preferred choices for U.S. households and businesses because they offer fast, affordable power at a time when energy needs are climbing. He stressed that policy stability in Washington is essential to maintain the current pace of deployment. Without clear and consistent policies, he warned that fewer solar projects will move forward, ultimately leading to higher energy bills for consumers.
Michelle Davis, head of solar at Wood Mackenzie and lead author of the report, noted that solar will continue to dominate new power capacity additions in the United States, even as natural gas generation expands. She explained that rising demand, combined with the increasing costs of building new gas plants, will keep solar economically competitive— even without the support of tax credits.
The report also outlines a range of scenarios showing how policy decisions could influence the solar industry over the coming years. Key factors include final guidance surrounding Foreign Entity of Concern rules, the results of ongoing trade actions and the ability of projects to secure required permits. The residential solar sector is expected to feel more significant impacts, especially following changes to tax policies in 2025. Stricter federal or state policies could slow solar deployment, tightening the overall electricity supply and contributing to higher energy prices.
While utility-scale solar remains among the most cost-efficient sources of new power generation, residential solar paired with battery storage continues to offer consumers one of the few ways to directly manage and reduce their energy bills. The first year of the Trump Administration also marked a milestone for domestic solar and energy storage manufacturing. With the launch of a new wafer manufacturing facility in the third quarter of 2025, the United States now has the capability to produce every major component of the solar supply chain domestically. Cell manufacturing capacity grew steadily, and module production increased by more than 50 percent, reaching a total of 65.5 gigawatts of capacity.
Texas remained the country’s fastest-growing solar market in 2025, installing 11 gigawatts of new capacity— more than any other state. Across the nation, 11 states set new annual solar installation records, while 12 states added more than 1 gigawatt of new capacity. Growth in states like Indiana and Utah was especially notable: Indiana nearly doubled its installations, reaching almost 3 gigawatts compared to 1.6 gigawatts the previous year. The report shows that despite political shifts and regulatory challenges, solar remains central to America’s energy future. Strong demand, expanding manufacturing capabilities and continued advances in storage technologies position the solar industry to play a leading role in meeting the country’s rapidly increasing energy needs in the years ahead.
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