US Continues to Build Out Solar Capacity

Earlier this month, the Solar Energy Industries Association (SEIA) released figures revealing that the US solar industry installed 43.2GW of solar capacity in 2025, accounting for over half of all new electricity generation capacity in the US. [1] Whilst down from the previous record of 50GW installed in 2024, this shows a continuing investment in solar build-out despite the political challenges faced by renewable energy developers in the US.

Home and Commercial Strong but Utility-Scale Struggles

Masked in the overall figures is a 16% decline in utility-scale solar installation and a 25% decline in community solar developments, which could indicate difficulties for large-scale developments due to additional challenges from the regulatory and economic environment. There are high levels of uncertainty surrounding utility-scale solar at the moment, and the SEIA suggests that this is causing developers to delay their projects.

Meanwhile, home and commercial installations remained stable indicating a continued demand from households and businesses for cheap renewable energy in the context of international energy  price increases over recent years. Domestic installation figures may have been buoyed by homeowners rushing to complete installations in advance of the removal of tax credits. 

Forward Outlook

Given the current geopolitical environment and rising oil prices, the demand for cheaper electricity could once more push individuals and businesses towards solar power, which is typically the cheapest form of electricity generation. Nonetheless, challenges remain for the residential solar sector, as significant tax credits for clean energy were repealed with the One Big Beautiful Bill Act (OBBBA) and ended in 2025. This removes a 30% tax credit for solar panels and battery systems, making them a significantly more expensive investment for households.

The SEIA predicts that utility-scale solar installations will remain stable over the period to 2036, though risks remain regarding the impacts of the OBBBA and continued uncertainty on tariffs. It appears unlikely that the precipitous growth of the past 10 years will be repeated, but a stable industry will continue to make the US energy market more resilient and less carbon-intensive.

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References

Image accreditation: US Department of the Interior (9th February 2015) from WikiCommons. Accessed on: 24th March 2026. Available at: https://commons.wikimedia.org/wiki/File:02-09-15_First_Solar_Desert_Sunlight_Solar_Farm_(15863210084).jpg