New solar capacity installed in the U.S. market decreased in 2025 compared to the previous year, indicating that momentum in the industry cooled following the Trump administration’s removal of subsidies and tax incentives for renewable energy developers, according to a study released Tuesday.
The solar market added 43 gigawatts of new capacity last year, down from nearly 50 GW in 2024, according to a study by the Solar Energy Industries Association (SEIA) and Wood Mackenzie. The report stated that the Trump administration’s “big and beautiful” bill led to industry-wide disruption. In 2025, utility-scale solar installations fell by 16%, and community solar installations dropped by 25%.
The solar industry is contending with tariff pressures and the current administration’s freeze on approvals for major projects, reflecting an energy agenda focused on oil, natural gas, coal, and nuclear power, and marking a shift away from Joe Biden’s green policies. Despite this, solar and energy storage still accounted for 79% of new generating capacity added during the first year of the Trump administration, with more than two-thirds of installations occurring in states he won, the report said.
Texas led the nation with 11 GW of new solar installations, followed by Indiana, Florida, Arizona, Ohio, Utah, and Arkansas. “Washington must provide policy certainty for the market to function properly and keep up with growing energy demand,” said Darren Van’t Hof, interim president and CEO of SEIA. “Without that certainty, fewer solar projects will be built, and Americans will pay the price with higher energy bills.” The report estimates that the U.S. will add 490 GW of solar generating capacity by 2036, bringing cumulative capacity to nearly 770 GW. “Even with continued growth in natural gas generation, solar will clearly remain the primary source of new electricity capacity in the United States,” noted Michelle Davis, head of solar at Wood Mackenzie, in the report.
