Solar energy is on track to make up more than half of all new electric generating capacity added in the United States this year, as developers ramp up installations at a record-setting pace, according to the U.S. Energy Information Administration (EIA). The agency reported Wednesday that 12 gigawatts of new utility-scale solar capacity were added in the first half of 2025, with developers planning to bring another 21 gigawatts online before year’s end.
If those projections are realized, the U.S. would add a total of 64 gigawatts of new capacity in 2025, surpassing the previous annual record of 58 gigawatts set in 2002. At that time, nearly all new capacity came from natural gas projects. The current shift highlights a broader national pivot toward renewable energy, with solar and battery storage now dominating the landscape of planned capacity additions.
Texas continues to lead the surge in solar growth. Of the solar projects completed in the first half of 2025, approximately 27 percent, or 3.2 gigawatts, were located in Texas. Developers aim to add another 9.7 gigawatts of solar capacity in the state during the second half of the year. Texas overtook California in 2024 as the state with the most installed utility-scale solar capacity and is expected to widen that lead further in 2025.
Texas expands lead in US solar and storage installations
Battery storage is also expanding rapidly, representing the second-largest share of new generating capacity so far this year. Developers added 5.9 gigawatts of battery storage between January and June, accounting for roughly 26 percent of new capacity. About half of that was deployed in Arizona and California. In Texas, developers plan to bring 7.0 gigawatts of battery storage online by the end of the year, with much of it scheduled to become operational in the final two quarters.
The anticipated 33 gigawatts of new solar capacity for 2025 would mark the largest annual increase in the nation’s history, reinforcing the sector’s rapid acceleration despite growing policy uncertainty. A rollback of federal clean energy tax incentives under the Trump administration has prompted concerns about the long-term stability of the renewable energy sector. However, developers appear to be moving forward with near-term plans, especially in states where economics and policy remain favorable.
Growth varies across states amid tax policy changes
While solar continues to gain momentum, growth has slowed slightly compared to 2024, when utility-scale installations expanded by 33 percent year over year. The rate of increase has dropped to about 10 percent in 2025. Growth has also become more uneven across states. Texas posted a 14 percent increase, while California saw only 2 percent growth. Florida reported no new utility-scale solar installations in the first half of the year. In contrast, states such as Arizona, Pennsylvania, Ohio, and Wisconsin experienced above-average expansion.
Economic analysts have warned that the withdrawal of federal incentives could eventually lead to higher electricity prices and reduced clean energy investment. Forecasts suggest the decline in subsidies could cut renewable energy growth by up to 59 percent over the next decade and drive electricity costs up by as much as 49 percent in some regions. Nationwide, rates could rise by an estimated 18 percent, with implications for energy affordability and grid reliability.
The surge in solar and battery storage installations underscores the private sector’s commitment to transitioning the U.S. power grid toward more sustainable sources. Whether the current pace can be maintained in the face of shifting political and regulatory headwinds remains a key question heading into 2026. – By MENA Newswire News Desk.