U.S. solar build stays on record pace despite policy crosswinds

• The U.S. remains on track to add about 33 GW of utility-scale solar in 2025, with solar accounting for three-quarters of new capacity in early-year data.

America’s solar engine is still revving. Fresh market data indicate the U.S. is on course to connect roughly 33 GW of utility-scale solar this year, even as developers navigate shifting tax rules and supply-chain twists. In the first five months alone, solar represented about 75% of all new U.S. generating capacity—an emphatic reminder of how far PV has moved into the mainstream.

Texas remains ground zero for scale, with a deep queue and strong resource underpinning gigawatt-class additions. But momentum is broad-based, stretching from the Desert Southwest to parts of the Southeast and Midwest, where new data-center loads and electrification are driving demand. Pairing PV with batteries is now standard in many markets, turning daytime surpluses into evening capacity and unlocking ancillary-service revenues.

Policy uncertainty hasn’t derailed the build. While new federal rules have raised questions about credits and domestic-content qualifications, developers have adapted through earlier procurement, tax-credit transfer deals, and tighter EPC coordination. Falling module prices and improved availability compared with 2023–2024 have also helped projects hold schedule.

The grid is adapting too. System operators are refining interconnection processes and leaning on storage to firm net load. Developers are optimizing DC-to-AC ratios and controls to squeeze more annual energy from fixed interconnection points, while utilities test flexibility programs to absorb midday peaks.

The takeaway: even with headwinds, the sector’s structural advantages—speed to build, low operating costs, and now dispatchability with storage—keep solar at the center of the U.S. resource mix. Expect a busy fourth quarter as projects race to energize and lock in milestone payments.