Solar and storage projects represented 85 percent of all new US power capacity in the first nine months of 2025, according to the latest Solar Market Insight report from the Solar Energy Industries Association (SEIA) and Wood Mackenzie. The figures highlight the sector’s central role in US power generation, even as federal permitting delays, grid connection challenges and policy uncertainty cast a shadow over more than 73 GW of future projects. The Department of the Interior’s July memo and unclear project approvals have prompted developers to warn that investment decisions are on hold.
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Republican states lead solar surge
Perhaps ironically, the report notes that 73 percent of this year’s new solar was installed in states carried by President Trump, led by Texas, Indiana and Florida. Texas alone accounted for nearly a quarter of the national total.
“This record-setting quarter for solar deployment shows that the market is continuing to turn to solar to meet rising demand,” said Abigail Ross Hopper, SEIA president and CEO. “But unless this administration reverses course, the future of clean, affordable and reliable solar and storage will be frozen by uncertainty and Americans will continue to see their energy bills go up.”
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Growth in Q3 was fuelled almost entirely by utility-scale projects. Year-on-year, US module prices have dropped more than 30 percent, thanks largely to global oversupply, helping ease project economics. Despite a surge in domestic manufacturing, including 17.7 GW of new module capacity added this year, most modules installed in the US remain imports, echoing Europe’s ongoing debate over supply chain resilience.
“We expect 250 GW of solar to be installed from 2025 to 2030. But the US solar industry has more potential,” said Michelle Davis, head of solar research at Wood Mackenzie. “The industry would be well positioned to meet more of this new demand if existing constraints were alleviated, presenting upside to our forecast.”
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Investment shifts to Europe
While the US posted strong quarterly numbers, BloombergNEF data shows overall clean energy investment in the US fell 36 percent in the first half of 2025, even as EU investment surged by 63 percent. The policy environment is now shifting capital from the US toward Europe.
The US experience mirrors challenges in Europe, where permitting, grid delays and manufacturing autonomy are also front and centre as solar and storage scale up. Both sides of the Atlantic are learning that stable policy, streamlined approvals and robust supply chains are essential to the task of scaling solar and storage. (TF)
