popular articles

U.S. Solar Growth Slows Under Political Pressure from Washington

Growth in the U.S. solar sector is expected to slow by 2030 due to political shifts in Washington directly impacting tax incentives and imposing tariffs on essential materials, creating sectoral uncertainty.

Please share:

After several years of strong expansion, the U.S. solar industry anticipates a significant slowdown in new installations by the end of the decade, according to a recent analysis by the Solar Energy Industries Association (SEIA) in collaboration with Wood Mackenzie.

Impact of Federal Tax Policies

The primary reason highlighted by these organizations relates to a series of recent policy measures in Washington. Notably, a bill introduced by the Republican majority in the House of Representatives could eliminate a significant portion of current tax credits, particularly those included in the 2022 Inflation Reduction Act (IRA). These credits previously boosted investments in both residential and commercial solar installations. Without these fiscal incentives, solar’s economic competitiveness compared to other forms of electricity generation could significantly weaken, leading to a projected 10% reduction in new installed capacity between 2025 and 2030.

Recently imposed tariffs on steel and aluminum, essential materials for solar infrastructure, represent an additional constraint. This measure directly increases investment costs and compels some developers to reconsider or delay their projects. Rising costs impact both large-scale industrial projects and domestic installations alike.

Current Situation and Sector Forecasts

During the first quarter of 2025, the United States installed approximately 10.8 gigawatts (GW) of new solar capacity. This represents a 7% decline compared to the same period the previous year, according to SEIA data. The residential sector was particularly impacted, recording a 13% drop due primarily to high interest rates and uncertainty over future tax incentives. This trend could persist in the short term, though stabilization is expected in the medium term.

Large-scale industrial projects, however, continue to dominate the U.S. solar landscape. Currently, five states—Texas, Florida, Ohio, Indiana, and California—account for nearly 65% of new installed solar capacity. This geographic concentration underscores the sector’s current dependence on favorable regulatory environments at the local level, despite federal uncertainties.

Towards Stabilization by 2030

The long-term outlook remains mixed. Analysts suggest solar competitiveness could gradually recover starting around 2030 if conventional electricity costs rise as expected, partially offsetting reduced tax incentives. Moreover, persistent political uncertainty makes clear market condition forecasts challenging.

Industry professionals closely monitor political developments, aware that a stable regulatory environment remains critical to maintaining investments necessary for ongoing solar development in the United States. The extent of the slowdown will largely depend on upcoming federal government decisions regarding energy and trade policies.

Register free of charge for uninterrupted access.

Publicite

Recently published in

Pine Gate signs 586 MW deal with Waaree for US-made solar modules

The $176 million agreement between Pine Gate Renewables and Waaree Solar Americas strengthens the US solar supply chain with locally manufactured modules.
TotalEnergies has acquired a 350 MW portfolio of solar projects and 85 MW of battery storage in the United Kingdom, expected to be operational by 2028 and supplying the equivalent of 100,000 British households.
TotalEnergies has acquired a 350 MW portfolio of solar projects and 85 MW of battery storage in the United Kingdom, expected to be operational by 2028 and supplying the equivalent of 100,000 British households.
Tokyo Electric Power Company signed a financing agreement with Bank SinoPac to support a 40 MW rooftop solar project in Singapore, marking a first for the group in the Asia-Pacific region.
Tokyo Electric Power Company signed a financing agreement with Bank SinoPac to support a 40 MW rooftop solar project in Singapore, marking a first for the group in the Asia-Pacific region.
rPlus Energies finalised over $500mn in tax equity financing with RBC to support the construction of the 800 MW Green River Energy Center in Utah.
rPlus Energies finalised over $500mn in tax equity financing with RBC to support the construction of the 800 MW Green River Energy Center in Utah.

Carey International commits $870mn to utility-scale solar projects in the United States

Carey International Group has committed $870mn to the construction of solar projects in the United States, marking the official launch of an energy portfolio led by SYMX Energy, with commissioning scheduled for 2026.
The Ivorian government has opened two tenders for 100 MWc photovoltaic plants in Dabakala and Niakaramandougou, each with 33 MWh of storage and 25-year IPP concessions.
The Ivorian government has opened two tenders for 100 MWc photovoltaic plants in Dabakala and Niakaramandougou, each with 33 MWh of storage and 25-year IPP concessions.
NextEra Energy Resources has inaugurated its first large-scale solar energy site in Louisiana, marking a key milestone in its expansion strategy with a capacity of 100 megawatts.
NextEra Energy Resources has inaugurated its first large-scale solar energy site in Louisiana, marking a key milestone in its expansion strategy with a capacity of 100 megawatts.
The two FirstEnergy subsidiaries have opened a third solar site on former industrial land, in cooperation with local partners, reaching a total capacity of 30 megawatts.
The two FirstEnergy subsidiaries have opened a third solar site on former industrial land, in cooperation with local partners, reaching a total capacity of 30 megawatts.

Velto Renewables and Q ENERGY launch 9 MWc solar park in partnership in Aude

The La Gineste park, jointly developed by Q ENERGY and Velto Renewables, has a capacity of 9 MWc and marks a strengthening of the business partnership between the two companies in the Occitanie region.
EDF and Korea Western Power signed an agreement to develop a 1.5-GW solar power plant in Abu Dhabi, following a tender for which sixteen entities had been prequalified.
EDF and Korea Western Power signed an agreement to develop a 1.5-GW solar power plant in Abu Dhabi, following a tender for which sixteen entities had been prequalified.
The Shafag 11 project in Jabrayil, backed by BP, SOCAR and the Azerbaijan Investment Company, secures a $200mn commitment at the Caspian Oil and Gas Exhibition.
The Shafag 11 project in Jabrayil, backed by BP, SOCAR and the Azerbaijan Investment Company, secures a $200mn commitment at the Caspian Oil and Gas Exhibition.
Chinese supplier Arctech will equip a green hydrogen project in Duqm with 175 MWp of solar trackers, marking a milestone in the industrial energy development of Oman’s coastal region.
Chinese supplier Arctech will equip a green hydrogen project in Duqm with 175 MWp of solar trackers, marking a milestone in the industrial energy development of Oman’s coastal region.

TotalEnergies and RGE secure key licence to export 1 GW of electricity to Singapore

Singa Renewables receives Singaporean approval to import Indonesian solar electricity, marking a strategic step forward in a regional project led by TotalEnergies and RGE.
Indian manufacturer Waaree has signed a $176mn solar module supply agreement with a US-based independent power producer, marking a key step in its industrial presence in the United States.
Indian manufacturer Waaree has signed a $176mn solar module supply agreement with a US-based independent power producer, marking a key step in its industrial presence in the United States.
Solveo Energies has inaugurated an experimental agrivoltaic system in the Pyrénées-Orientales, combining solar power production and crop protection on a farm facing drought conditions.
Solveo Energies has inaugurated an experimental agrivoltaic system in the Pyrénées-Orientales, combining solar power production and crop protection on a farm facing drought conditions.
The Trump administration has cancelled a federal guarantee granted to Sunnova Energy, withdrawing its support for a loan programme intended to finance 100,000 residential solar installations.
The Trump administration has cancelled a federal guarantee granted to Sunnova Energy, withdrawing its support for a loan programme intended to finance 100,000 residential solar installations.

LONGi signs 102MW deal to equip public infrastructure in Finland

Chinese group LONGi has signed a 102MW supply contract for Hi-MO X10 back contact solar modules with a Finnish energy company, marking a step in its Northern European expansion.
The Quilemba Solar joint venture is building a photovoltaic power plant near Lubango, marking a milestone for private initiative in Angola's electricity sector.
The Quilemba Solar joint venture is building a photovoltaic power plant near Lubango, marking a milestone for private initiative in Angola's electricity sector.
AMPYR Energy USA has completed the acquisition of two large-scale solar projects in the Carolinas, bringing its U.S. portfolio to over 4 GW.
AMPYR Energy USA has completed the acquisition of two large-scale solar projects in the Carolinas, bringing its U.S. portfolio to over 4 GW.
Axian Energy has launched work on the NEA Kolda solar plant, equipped with a 72 MWh storage system, for a total investment of €105mn ($113.6mn).
Axian Energy has launched work on the NEA Kolda solar plant, equipped with a 72 MWh storage system, for a total investment of €105mn ($113.6mn).

Mirova grants $10mn loan to EDF for solar projects in Africa

EDF will strengthen its off-grid platform in Africa with a $10mn loan from Mirova to expand electricity access to 5 million people by 2030.
AES will supply 650 MW of solar capacity to Meta through two long-term power purchase agreements in the United States, strengthening its position in the Southwest Power Pool market.
AES will supply 650 MW of solar capacity to Meta through two long-term power purchase agreements in the United States, strengthening its position in the Southwest Power Pool market.
Boralex signed renewable energy certificate contracts with New York’s energy authority for two solar projects totalling 450 MW in capacity.
Boralex signed renewable energy certificate contracts with New York’s energy authority for two solar projects totalling 450 MW in capacity.
The Ivorian government has approved a 25-year concession for an 85,934 MWh solar power plant in Katiola under a public-private partnership with Swiss energy firm JC Mont-Fort.
The Ivorian government has approved a 25-year concession for an 85,934 MWh solar power plant in Katiola under a public-private partnership with Swiss energy firm JC Mont-Fort.

Advertising