US solar installations were down in 2025, breaking a streak of rapid growth in America’s renewable energy scene. A new report from the Solar Energy Industries Association and Wood Mackenzie lays it out: the country built a lot fewer solar projects than it did the year before. Analysts point to policy changes under Donald Trump, such as scrapping renewable energy incentives and tax breaks, which chased off investors and stalled project approvals. Still, solar isn’t fading away, and it’s holding onto its spot as a key player in the nation’s shift to clean electricity, especially as new tech keeps driving up energy demand.

Why Did US Solar Installations Fall in 2025?

• Fewer annual installations: In 2025, the US installed 43 GW of solar capacity, compared to almost 50 GW in 2024.
• Changes in policies and incentives: The administration’s “One Big Beautiful Bill Act” took away many subsidies and tax credits for renewable energy projects.
• Less in utility-scale solar: In 2025, there was a 16% reduction in utility-scale solar installations, as many large-scale power projects were delayed or abandoned.
• Community solar slowdown: Community solar installations declined more sharply in 2025, with a 25% reduction in community solar installations.

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What Other Factors Are Impacting the U.S. Solar Industry?

• Pressure of tariffs on equipment: An increase in import tariffs for solar panels and equipment has resulted in higher project costs, thereby reducing the viability of new projects.
• Delays in project approvals: A freeze in approvals for large-scale renewable energy projects has resulted in delayed project pipelines in many states.
• Shift in focus for energy in the nation: The focus of the federal government has been on increasing oil, natural gas, coal, and nuclear energy, as opposed to the focus under the Joe Biden administration.
• Geographic distribution of growth: Despite policy and regulatory changes, more than two-thirds of the growth in solar installations has been in states that supported Trump in the election.

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What Does the Future Hold for Solar Energy in the United States?

Despite this slowdown, solar power is still one of the most promising growing sources of electricity in the US, according to industry analysts, who point out that Solar and energy storage combined accounted for 79% of all new power-generating capacity added in the US in the first year of the Trump administration. Texas led the US in new solar capacity, adding 11 GW, followed by Indiana, Florida, Arizona, Ohio, Utah, and Arkansas.

US solar installations down in 2025 do not signal an end to solar as the leading source of new power generation capacity; rather, it confirms that demand for electricity will continue to rise over the next 10 years, and that solar power will remain the dominant source of new power generation capacity during this time.

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