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Released June 16, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--The U.S. solar industry saw its third-largest expansion ever during the first quarter, though tariffs and potential changes to federal incentives create substantial uncertainties, the Solar Energy Industries Association (SEIA) found.
"Solar and storage continue to dominate America's energy economy, adding more new capacity to the grid than any technology using increasingly American-made equipment," SEIA President and Chief Executive Officer Abigail Ross Harper said Thursday.
Her group found the domestic solar power sector added 8.6 gigawatts (GW) of new capacity during the first quarter, the third-largest quarterly increase on record. The June report from the U.S. Energy Information Administration (EIA) found that U.S. solar power generation should increase by 33% year-on-year this summer.
Natural gas accounts for the bulk of the power on the U.S. grid. Renewables, however, are expanding, with total capacity expected to increase by 10% by next year. While wind power accounts for the bulk of the renewable energy on the grid, solar power is expanding faster, with a year-on-year increase of 21% expected, based on EIA estimates.
"But our success is at risk," warned Hopper.
Legislation moving through Congress would void some energy tax incentives for renewable energy, and U.S. President Donald Trump has already thrown up roadblocks to new programs, halting some initiatives such as offshore wind energy leases.
U.S. rooftop-solar energy company Sunnova (Houston, Texas) said in March that it didn't have enough cash flow to meet its obligations for another year without reconsidering refinancing, with management at the time saying it was unlikely they would be able to continue for long with existing corporate plans.
Last week, the company filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas. With Trump decrying many of his predecessor's initiatives as "radical" and "wasteful," the administration had already axed a $3 billion loan guarantee for Sunnova earlier this year. For more on that, see June 11, 2025, article - U.S. Solar Company Sunnova Files for Bankruptcy.
Without appropriate congressional support, the SEIA argued, the U.S. solar energy sector will not be able to compete with China, which has been accused of flooding the solar market with low-cost goods for years.
Former President Barack Obama propped up former solar power Solyndra with hefty loans, only to see the company collapse under bankruptcy.
Industrial Info still sees billions of dollars in potential spending in the U.S. solar power sector, with El Paso Electric Company's slated facility in Texas among the largest in terms of investment value, at $329 million. El Paso is planning for 100 megawatts (MW) of solar power and another 100 MW in battery storage. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project and Plant databases can click here for the project report and click here for the plant profile.
The EIA expects total electricity demand will nevertheless increase by 1%% this summer, compared with year-ago levels.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
"Solar and storage continue to dominate America's energy economy, adding more new capacity to the grid than any technology using increasingly American-made equipment," SEIA President and Chief Executive Officer Abigail Ross Harper said Thursday.
Her group found the domestic solar power sector added 8.6 gigawatts (GW) of new capacity during the first quarter, the third-largest quarterly increase on record. The June report from the U.S. Energy Information Administration (EIA) found that U.S. solar power generation should increase by 33% year-on-year this summer.
Natural gas accounts for the bulk of the power on the U.S. grid. Renewables, however, are expanding, with total capacity expected to increase by 10% by next year. While wind power accounts for the bulk of the renewable energy on the grid, solar power is expanding faster, with a year-on-year increase of 21% expected, based on EIA estimates.
"But our success is at risk," warned Hopper.
Legislation moving through Congress would void some energy tax incentives for renewable energy, and U.S. President Donald Trump has already thrown up roadblocks to new programs, halting some initiatives such as offshore wind energy leases.
U.S. rooftop-solar energy company Sunnova (Houston, Texas) said in March that it didn't have enough cash flow to meet its obligations for another year without reconsidering refinancing, with management at the time saying it was unlikely they would be able to continue for long with existing corporate plans.
Last week, the company filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas. With Trump decrying many of his predecessor's initiatives as "radical" and "wasteful," the administration had already axed a $3 billion loan guarantee for Sunnova earlier this year. For more on that, see June 11, 2025, article - U.S. Solar Company Sunnova Files for Bankruptcy.
Without appropriate congressional support, the SEIA argued, the U.S. solar energy sector will not be able to compete with China, which has been accused of flooding the solar market with low-cost goods for years.
Former President Barack Obama propped up former solar power Solyndra with hefty loans, only to see the company collapse under bankruptcy.
Industrial Info still sees billions of dollars in potential spending in the U.S. solar power sector, with El Paso Electric Company's slated facility in Texas among the largest in terms of investment value, at $329 million. El Paso is planning for 100 megawatts (MW) of solar power and another 100 MW in battery storage. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project and Plant databases can click here for the project report and click here for the plant profile.
The EIA expects total electricity demand will nevertheless increase by 1%% this summer, compared with year-ago levels.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).