The US solar industry continues to experience significant growth, with 10.8 gigawatts (GW) of new solar capacity added in the first quarter of 2025. Solar and storage technologies accounted for 82% of all new electricity-generating capacity during this period, highlighting the industry’s importance in the transition to clean energy.
In addition to the increase in solar installations, the US also saw a significant expansion in solar manufacturing capacity. The first quarter of 2025 saw 8.6 GW of new module manufacturing capacity come online, with eight new or expanded factories opening in Texas, Ohio, and Arizona. Solar cell production doubled to 2 GW, thanks to a new factory in South Carolina.
Despite this growth, the industry faces uncertainty due to new tariffs and proposed legislation that could impact clean energy tax incentives. The “Big, Beautiful Bill” passed by the House could have severe consequences for the industry, including factory closures, job losses, and higher electricity bills. If Congress does not act to address these issues, 330,000 jobs could be at risk, along with billions of dollars in local investment.
Tariff uncertainty and proposed changes to clean energy tax credits are already causing instability in the market. Analysts warn that the US solar market has not yet reached its full potential and that policy missteps could hinder further growth. SEIA and Wood Mackenzie have revised their five-year outlook for the industry, with residential and utility-scale solar segments expected to see declines if the current policies are not addressed.
One major point of tension is the political landscape, with states that voted for Donald Trump in 2024 leading in solar installations. If clean energy tax incentives are rolled back, the US could see a significant drop in energy production and struggle to compete with global leaders like China in the race to power artificial intelligence.
In conclusion, while the US solar industry is experiencing rapid growth, policy challenges threaten to derail this progress. It is essential for lawmakers to address tariff uncertainty and legislative threats to ensure the industry can continue its expansion and contribute to a clean energy future.
