U.S. solar power is growing at a record pace – while it still can
2025 set to be a record year for U.S. solar, but political turbulence threatens growth
The year 2025 will go down in U.S. energy history as a record year for new solar installations. However, political turmoil in Washington could mean this surge is only a temporary “breather” for the industry.
According to the latest data from the Energy Information Administration (EIA), around 12 GW of new solar capacity was connected to the U.S. grid in the first half of the year, with another 21 GW planned by the end of December. This means that solar power alone will account for more than half of the 64 GW of new generation capacity expected in 2025. Together with wind farms and energy storage, clean energy will make up as much as 93% of all new power plants.
If the forecasts prove correct, the United States will break the historic record set in 2002, when 58 GW of new capacity was added at the peak of the natural gas boom.
Political pushback from the administration
Serious challenges, however, are emerging on the horizon. The Donald Trump administration introduced legislation in the summer that limits tax credits for the renewable energy sector, effectively raising the cost of new investments. At the same time, the federal government is blocking the development of wind and solar projects on public lands while artificially propping up coal and gas plants.
One example is the Department of Energy’s decision to invoke emergency powers to halt the closure of the outdated J.H. Campbell coal plant in Michigan. Such measures translate into higher costs for consumers and could be repeated elsewhere.
A “last sprint”?
The current solar boom is largely driven by projects that began before the new regulations came into force. Developers are rushing to complete investments as quickly as possible, before the policy and tax changes undermine their profitability.
The year 2026 will be crucial – to benefit from the full tax credit, companies must start construction by mid-next year. As a result, another wave of acceleration is expected, followed by a sharp decline in new investments.
What’s next for the U.S. energy transition?
Without changes in energy policy, the U.S. risks losing its current momentum in power plant construction. Meanwhile, rising electricity demand requires an acceleration, not a slowdown, in renewable energy investments.
Today’s record surge in solar capacity may therefore prove to be just a temporary peak before a period of stagnation – precisely at the moment when the country needs cheap, clean energy more than ever.