US solar capacity installations fell 14% in 2025 compared with the previous year, a new report found, as the Trump administrationâs 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. âItâs clear that solar will â continue to âbe the dominant source of new power capacity âin the US even as gas generation continues to grow,â the reportâs authors wrote.
