US Solar capacity surges despite incentive cuts
Summary and headline written by AI from the source article. How we work
In the second quarter of 2026, the United States reached a new record for solar power capacity. Installed solar power can now generate enough electricity to power over 50 million homes.
Solar installations increased 45% compared to the same period in 2025 and 43% compared to the first quarter of 2026, driven largely by large-scale utility projects.
These large installations reached 9.6 GWdc in the quarter, a 61% increase year-over-year, as the country faces increasing electricity demand from data centers and electrification. Surprisingly, states that voted for Donald Trump in the 2024 presidential election accounted for 71% of the solar capacity installed in the first half of 2026. Eight of the ten states with the most new installations are politically aligned with the Republican party, despite the president’s support for fossil fuels and skepticism toward ecological transition.
Companies, utilities, and investors are prioritizing solar power because it meets concrete needs for new electrical capacity, cost, and construction timelines. Wood Mackenzie forecasts approximately 44 GWdc of new solar installations annually through 2031, potentially doubling the total US capacity in five years. However, challenges remain regarding permitting times and the transition following the end of tax incentives.
While large-scale projects continue, residential solar installations are struggling after the Residential Clean Energy Credit expired at the end of 2025, though a rebound is predicted for 2027 as homeowners seek to reduce energy costs and increase resilience.
