U.S. Solar Installations Reach 18 GW Amid Policy Challenges
Source： solarquarter
The U.S. solar industry added nearly 18 gigawatts (GW) of new capacity in the first half of 2025, despite a wave of anti-clean energy policies introduced by the Trump administration. Solar and storage accounted for 82% of all new power capacity added to the grid during the period, underscoring the growing market demand for renewable energy solutions.
However, the industry faces significant headwinds. The One Big Beautiful Bill Act (HR1) and other recent policy measures are projected to reduce deployment forecasts. According to the U.S. Solar Market Insight Q3 2025 report by the Solar Energy Industries Association (SEIA) and Wood Mackenzie, the low-case scenario estimates that the country could lose 44 GW of solar deployment by 2030 — an 18% decline. When compared with pre-HR1 forecasts, the potential reduction could total 55 GW, or a 21% decline.
“Solar and storage are the backbone of America’s energy future, delivering the majority of new power to the grid at the lowest cost to families and businesses,” said SEIA President and CEO Abigail Ross Hopper. “Instead of unleashing this American economic engine, the Trump administration is deliberately stifling investment, which is raising energy costs for families and businesses, and jeopardizing the reliability of our electric grid.”
The report highlights that 77% of all solar capacity installed this year has been built in states that supported President Trump in the 2024 election. Eight of the top ten states for new installations are among them, including Texas, Indiana, Arizona, Florida, Ohio, Missouri, Kentucky, and Arkansas.
In terms of manufacturing, the U.S. added 13 GW of new solar module capacity in the first half of 2025, with new or expanded factories in Texas, Indiana, and Minnesota. The country’s total solar module manufacturing capacity now stands at 55 GW. Nevertheless, the report noted a halt in new upstream manufacturing investments in Q2 due to federal policy uncertainty, putting billions of dollars of private investment at risk.
Looking ahead, solar deployment is forecasted to be 4% lower than pre-HR1 projections by 2030. Near-term growth is supported by ongoing projects, tax credit deadlines, and increased demand for electricity amid rising costs and reduced availability of natural gas.
The report also cites concerns about permitting challenges introduced by the Department of the Interior (DOI), which singled out solar projects for more restrictive review. These actions could affect around 44 GW of planned capacity, with Arizona, California, and Nevada among the hardest hit.
“There is considerable downside risk for the solar industry if the federal permitting environment creates more constraints for solar projects,” said Michelle Davis, head of solar research at Wood Mackenzie. “Further uncertainty from federal policy actions is making the business environment for the solar industry incredibly challenging.”
SEIA has urged DOI Secretary Doug Burgum to reconsider these actions, warning that without reversal, the measures could lead to job losses, higher electricity prices, and a less competitive economy.
The report warns that declining solar deployment may hinder the administration’s broader technological ambitions, including AI leadership. In response, SEIA recently released a grid reliability policy agenda calling for coordinated actions by local, state, and federal leaders to strengthen the U.S. electric grid through solar and storage technologies.