US, Mar 10 : The U.S. solar market saw a slowdown in 2025, with new installations dropping to 43 gigawatts, compared to nearly 50 GW in 2024, according to a joint study by the Solar Energy Industries Association and Wood Mackenzie. The decline highlights cooling momentum in the sector following President Donald Trump’s rollback of renewable energy subsidies and tax incentives.
The report shows that the administration’s One Big Beautiful Bill Act disrupted the industry, leading to a 16% drop in utility scale solar installations and a 25% decline in community solar projects in 2025. Tariff pressures and a freeze on approvals for major projects under the current administration contributed to the slowdown, reflecting a shift in the national energy agenda toward oil, gas, coal, and nuclear.
Despite the setback, solar and energy storage accounted for 79% of new capacity additions in the first year of the Trump administration, with over two thirds of installations concentrated in states won by him. Texas led with 11 GW of new capacity, followed by Indiana, Florida, Arizona, Ohio, Utah, and Arkansas.
The sector remains economically competitive, particularly as electricity demand from AI-focused data centers rises sharply. SEIA interim President and CEO Darren Van’t Hof stressed the need for policy certainty, warning that without it, fewer solar projects will be built and Americans could face higher energy costs.
Looking ahead, the report estimates that the U.S. could add 490 GW of new solar capacity by 2036, pushing cumulative installed capacity close to 770 GW. Michelle Davis, head of solar at Wood Mackenzie, said solar is expected to remain the dominant source of new power capacity in the U.S., even as gas generation continues to grow.