US solar installations fall in 2025 after Trump policy changes: Report
Synopsis
US solar installations declined in 2025 as policy changes under President Donald Trump disrupted the renewable energy sector, according to a report by the Solar Energy Industries Association and Wood Mackenzie cited by Reuters. The study highlighted weaker growth in utility-scale and community solar projects amid subsidy cuts and regulatory uncertainty.
US solar installations declined in 2025 compared with the previous year as policy changes under President Donald Trump disrupted the renewable energy sector, according to a report from the Solar Energy Industries Association and Wood Mackenzie cited by Reuters.
Key highlights
- US solar installations fall to 43 GW in 2025 from nearly 50 GW in 2024
- Utility-scale solar capacity drops 16%, community solar declines 25%
- Policy changes and tariffs weigh on renewable sector growth
- Solar and energy storage still account for 79% of new capacity additions
The United States added 43 gigawatts (GW) of new solar capacity in 2025, down from nearly 50 GW in 2024, according to an industry report.
The slowdown reflects policy changes under the Trump administration, including the removal of renewable energy subsidies and tax incentives, as well as tariffs and pauses in project approvals.
Utility and community solar hit
The report noted that utility-scale solar installations fell 16%, while community solar projects dropped 25% over the year.
Despite the decline, solar energy continues to dominate new electricity generation capacity in the US.
Most new installations occurred in Trump-won states, with Texas leading at 11 GW, followed by Indiana, Florida, Arizona, Ohio, Utah and Arkansas.
Solar and energy storage together represented 79% of new power capacity additions in the first year under the current administration, highlighting solar’s continuing market strength.
Market outlook and policy impact
Industry experts say policy certainty is critical for continued growth.
Darren Vant Hof, interim CEO of the Solar Energy Industries Association (SEIA), emphasised that without stable policies, fewer solar projects will be built and energy costs could rise.
Analysts from Wood Mackenzie predict solar will remain the largest source of new electricity generation in the US. Estimates suggest the country could add 490 GW of new solar capacity by 2036, reaching a total of nearly 770 GW.
Driving factors
Rising electricity demand from data centres and artificial intelligence technologies may support future solar development despite policy challenges.
Industry observers will watch whether market forces or future policy adjustments help revive growth in the sector.
FAQs
Q1. Why did US solar growth slow in 2025?
Policy changes, removal of subsidies, and regulatory pauses caused solar installation declines.
Q2. How much solar capacity was added in 2025?
The US installed 43 GW of new solar capacity, down from nearly 50 GW in 2024.
Q3. Will solar continue to grow in the US?
Yes, forecasts indicate 490 GW could be added by 2036, maintaining solar’s dominance.
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
