Intelligence for the New World Economy
US solar capacity installations fell 14% in 2025 compared with the previous year, a new report found, as the Trump administration’s rollback of solar tax credits began hitting the sector.
A combination of tariffs, scrapped subsidies, and a White House energy agenda built around fossil fuels and nuclear power drove utility-scale solar down 16% and community solar down 25%, according to a Solar Energy Industries Association and Wood Mackenzie study.
Still, solar remained the largest source of new electricity added to the grid, kept alive by its appealing economics and a rising urgency to meet demand from energy-hungry data centers. “It’s clear that solar will continue to be the dominant source of new power capacity in the US even as gas generation continues to grow,” the report’s authors wrote.
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