US solar installations down in 2025 after Trump policies jolt market, report says
The solar market installed 43 gigawatts of new capacity last year, compared to nearly 50 GW in 2024, according to a study by the Solar Energy Industries Association (SEIA) and Wood Mackenzie.
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The administration’s One Big Beautiful Bill Act has caused industry-wide disruption, with utility-scale solar installations set to decline by 16% by 2025 and community solar by 25%, the report said.
The solar industry is struggling with tariff pressures and freezes on approvals for major projects under the current administration; This reflects an energy agenda focused on oil, gas, coal and nuclear and marks a shift from Joe Biden’s green policies.
Still, 79% of new capacity additions in the first year of the Trump administration came from solar and energy storage, and more than two-thirds of the installations were in states Trump won, the report said.
Texas continued to lead with 11 GW of new solar capacity, followed by Indiana, Florida, Arizona, Ohio, Utah and Arkansas.Also read: US 126% solar tariffs anger India’s affluent panel makers
The report noted that solar power remains economically competitive, with demand for electricity, particularly from data centers dedicated to artificial intelligence, reaching record levels.
“Washington must provide policy certainty so the market can function and keep pace with growing energy demands,” said SEIA interim President and CEO Darren Van’t Hof.
“Without this certainty, less solar will be built and Americans will pay the price with higher energy bills.”
The report estimates that the US will add 490 GW of new solar capacity by 2036, bringing cumulative installed capacity to approximately 770 GW.
“Even as gas production continues to grow, it is clear that solar energy will continue to be the dominant source of new energy capacity in the United States,” Michelle Davis, Wood Mackenzie’s president of solar, said in the report.
