New solar installations nationally saw a marked decline last year, with prospects for 2026 somewhat flat.
So says a new report issued by the Solar Energy Industries Association which notes that overall, the solar market saw the installation of around 43 gigawatts in new capacity in 2025. That number is significantly down from the year before when the industry recorded 50 gigawatts in new residential, non-residential, and utility projects.
While the industry trendline has headed south, the overall annual figures are still dramatically higher than where things stood when the total capacity came in at 15 gigawatts.
The report says that the industry is currently beset with a confluence of challenges, tariff uncertainties, and a freeze on the approval of major projects.
But undoubtedly the primary factor confronting the industry is the Trump administration’s lack of enthusiasm. In the last 14 months, the administration has greatly diminished both tax breaks and subsidies for renewable projects.
Ironically, the report, U.S. Solar Market Insight, done in conjunction with the consultancy group Wood Mackenzie, notes that more than 65% of new solar projects completed last year occurred in Arizona, Arkansas, Florida, Indiana, Ohio, Texas, and Utah – all states won by Trump in the 2024 election.
Despite the recent decreased figures, the report forecasts that the U.S. is slated to add upwards of 490 gigawatts in new capacity in the next decade, contributing to a total installed capacity nationally of 770 gigawatts.
In a statement, Darren Van’t Hoff, chief executive officer of SEIA, confronted the current mood in the White House and Congress by noting: “Washington must deliver policy certainty for the market to work and to keep pace with growing energy demands.”
Short of that certainty, added Van’t Hoff, “less solar will get built and Americans will pay the price with higher energy bills.”
March 16, 2026
By Garry Boulard
Photo courtesy of Unsplash
