The U.S. solar industry has increased its Solar module manufacturing capacity in Q1 of 2025 and added 8.6 gigawatts (GW). This makes it the third-largest quarter for new manufacturing capacity so far.
The surge is attributed to the new factories in Texas, Ohio, and Arizona, as reported by the Solar Energy Industries Association (SEIA) and Wood Mackenzie. Additionally, the, U.S. solar cell production capacity in Q1 stands at 2GW, doubled of what was previously ,with the opening of a new factory in South Carolina.
U.S. solar industry also installed 10.8 GW of new electricity generating capacity in Q1, the report further noted. Lastly, solar and storage stands currently stands at 82% of all new generating capacity added to the grid.
While solar manufacturing and deployment is a good indicator of the American energy independence and growth, new tariffs and potential changes to federal tax credits raise concerns about growth. According to SEIA, key concerns include economy-wide tariff uncertainty, new anti-dumping and countervailing duties (AD/CVD) on cells and modules from Southeast Asia, and potential shifts in federal energy incentives. There’s also significant concern about the passage of the reconciliation legislation by the congress, which proposes cutting energy tax incentives.
Speaking on the issue, SEIA president Abigail Ross Hopper said, “Solar and storage continue to dominate America’s energy economy, adding more new capacity to the grid than any technology using increasingly American-made equipment.But our success is at risk. If Congress fails to fix the legislation passed by the House – which would render the energy tax incentives unusable – lawmakers will trigger a dangerous energy shortage that will raise our electric bills and stop America’s manufacturing boom in its tracks. The Senate still has time to get this right and secure President Trump’s vision for American energy dominance.”
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