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According to a report from the Solar Energy Industries Association and Wood Mackenzie, solar energy constituted 54% of all new electricity generation capacity in the United States in 2025. This marks the fifth consecutive year that solar has held the top position. When combined with storage, photovoltaic technology represented 79% of new capacity additions for the year.
The industry installed 43.2 gigawatts of solar capacity in 2025, though this represented a 14% decrease compared to the previous year. A significant drop in utility-scale installations during the final quarter was a primary driver of the overall decline. The passage of new legislation prompted developers to reassess project timelines, pushing many planned completion dates into the period between 2026 and 2028.
Within the utility-scale segment, installations fell by 16% year-over-year. Pricing for these projects increased, with costs rising 11% for fixed-tilt systems and 14% for single-axis tracker installations. These increases were linked to higher expenses for components and for engineering and construction services.
The residential market experienced a slight decline in volumes with stable pricing, while commercial installations grew by 6% alongside a 10% increase in pricing. Community solar capacity installations fell by 25% compared to 2024.
Texas led the nation in new solar capacity for the year, adding approximately 11 gigawatts. California followed with 4.7 gigawatts, and Indiana ranked third with 3 gigawatts installed. In total, twelve states each added more than one gigawatt of new solar capacity during the year, with eleven states setting new annual installation records. The report noted that over two-thirds of the capacity installed in 2025 was located in states won by the current President of the United States.
The domestic manufacturing sector saw substantial growth, with module production capacity increasing by 50%. The country also saw significant expansion in cell manufacturing and the addition of its first new wafer production capacity in nearly a decade. This development means the U.S. now has the potential to produce every major component of a solar panel domestically, though actual output remains below national demand.
Analysts project a period of relatively stable installation volumes extending through at least 2036. While a rebound to slightly above 43 gigawatts is forecast for 2026, volumes are not expected to surpass that level again until 2033. Forecast models indicate potential variability, with high and low scenarios suggesting installations over the next decade could swing 11% above or below a base case. Distributed solar segments are seen as particularly sensitive to policy and cost changes, while utility-scale forecasts show less variance due to the inertia of large project pipelines.
This report provides a comprehensive view of the solar cells and light-emitting diodes industry in the United States, tracking demand, supply, and trade flows across the national value chain. It explains how demand across key channels and end-use segments shapes consumption patterns, while also mapping the role of input availability, production efficiency, and regulatory standards on supply.
Beyond headline metrics, the study benchmarks prices, margins, and trade routes so you can see where value is created and how it moves between domestic suppliers and international partners. The analysis is designed to support strategic planning, market entry, portfolio prioritization, and risk management in the solar cells and light-emitting diodes landscape in the United States.
The report combines market sizing with trade intelligence and price analytics for the United States. It covers both historical performance and the forward outlook to 2035, allowing you to compare cycles, structural shifts, and policy impacts.
This report provides a consistent view of market size, trade balance, prices, and per-capita indicators for the United States. The profile highlights demand structure and trade position, enabling benchmarking against regional and global peers.
The analysis is built on a multi-source framework that combines official statistics, trade records, company disclosures, and expert validation. Data are standardized, reconciled, and cross-checked to ensure consistency across time series.
All data are normalized to a common product definition and mapped to a consistent set of codes. This ensures that comparisons across time are aligned and actionable.
The forecast horizon extends to 2035 and is based on a structured model that links solar cells and light-emitting diodes demand and supply to macroeconomic indicators, trade patterns, and sector-specific drivers. The model captures both cyclical and structural factors and reflects known policy and technology shifts in the United States.
Each projection is built from national historical patterns and the broader regional context, allowing the report to show where growth is concentrated and where risks are elevated.
Prices are analyzed in detail, including export and import unit values, regional spreads, and changes in trade costs. The report highlights how seasonality, freight rates, exchange rates, and supply disruptions influence pricing and margins.
Key producers, exporters, and distributors are profiled with a focus on their operational scale, geographic footprint, product mix, and market positioning. This helps identify competitive pressure points, partnership opportunities, and routes to differentiation.
This report is designed for manufacturers, distributors, importers, wholesalers, investors, and advisors who need a clear, data-driven picture of solar cells and light-emitting diodes dynamics in the United States.
The market size aggregates consumption and trade data, presented in both value and volume terms.
The projections combine historical trends with macroeconomic indicators, trade dynamics, and sector-specific drivers.
Yes, it includes export and import unit values, regional spreads, and a pricing outlook to 2035.
The report benchmarks market size, trade balance, prices, and per-capita indicators for the United States.
Yes, it highlights demand hotspots, trade routes, pricing trends, and competitive context.
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The Largest Import Supplying Countries
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