Solar, Storage Account for 79% of New U.S. Power Capacity in 2025
The United States installed 43 gigawatts (GW) of new solar capacity in 2025, maintaining solar’s position as the largest source of new electricity generation added to the grid for the fifth consecutive year, according to a report released by the Solar Energy Industries Association (SEIA) and Wood Mackenzie.
TheU.S. Solar Market Insight 2025 Year in Review report said solar and energy storage together accounted for 79% of all new power capacity installed during the first year of the Trump administration.
Most Additions Under Trump’s Region
More than two-thirds of the solar capacity added in 2025 was installed in states won by President Donald Trump in the latest election cycle. Texas, Indiana, Florida, Arizona, Ohio, Utah and Arkansas ranked among the top ten states for solar additions during the year.
Despite regulatory measures targeting clean energy and evolving tax policies, the report said the economics of solar remain strong, particularly as electricity demand rises due to the rapid expansion of data centres.
The United States is projected to add around 490 GW of solar capacity by 2036, taking cumulative installed solar capacity to nearly 770 GW.
“Solar and storage continue to dominate new capacity additions to the grid despite policy headwinds,” said Darren Van’t Hof, interim president and chief executive officer of SEIA. He added that policy certainty would be necessary to keep pace with rising energy demand.
Solar To Remain Dominant
Michelle Davis, head of solar at Wood Mackenzie and lead author of the report, said solar is expected to remain the dominant source of new power capacity in the country even as natural gas generation expands.
“Strong demand growth combined with rising costs of building new gas plants will allow solar to remain competitive, even without tax credits,” Davis said.
The report outlines several scenarios showing how policy changes could affect solar deployment. Final guidance on rules related to Foreign Entity of Concern provisions, outcomes of ongoing trade actions and permitting challenges will play a key role in determining future solar capacity additions.
The residential solar segment, in particular, faces pressure due to tax policy changes introduced in 2025.
The report also noted that restrictive policies could slow solar deployment, tightening electricity supply and pushing power prices higher. Utility-scale solar remains among the most cost-effective options for new generation capacity, while rooftop solar paired with battery storage allows households to manage their electricity costs.
Growth In Domestic Solar Manufacturing
Meanwhile, 2025 marked significant growth in domestic solar manufacturing in the United States. With the commissioning of a wafer manufacturing facility in the third quarter, the country now has production capacity across all major components of the solar supply chain.
Cell manufacturing capacity continued to expand during the year, while module manufacturing capacity increased by more than 50% to reach 65.5 GW.
Texas remained the fastest-growing solar market, installing 11 GW of new capacity in 2025. Overall, 11 states recorded new annual installation records and 12 states added more than 1 GW of solar capacity.
Indiana and Utah saw particularly strong growth, with Indiana installing nearly 3 GW of solar capacity in 2025, compared with 1.6 GW the previous year.