The U.S. solar market saw a significant jump in capacity installations in the third quarter as developers ramp up activity and construction to qualify for the last investment tax credits that are being phased out by the Trump Administration.
The industry added 11.7 gigawatts direct current (GWdc) of solar power capacity in the third quarter of 2025, up by 20% from a year earlier and a massive 49% surge compared to the second quarter. That was the third-largest quarter for deployment in the industry’s history, the Solar Energy Industries Association (SEIA) and Wood Mackenzie said in the U.S. Solar Market Insight Q4 2025 report.
After the tumult caused by the passage of the One Big Beautiful Bill Act (OBBBA) in the summer, the robust third quarter largely reflects utility-scale solar projects that were mostly complete in the second quarter, the report noted.
Under the Trump Administration’s OBBBA, wind and solar projects must begin construction no later than July 4, 2026, to qualify for Investment Tax Credit (ITC) or Production Tax Credit (PTC). Projects that miss this deadline must be fully placed in service by December 31, 2027, to remain eligible for tax credits.
While utility-scale solar installations hit a third-quarter record, the federal permitting freeze presents uncertainty and risk to the industry going forward, SEIA and WoodMac said.
Still, one thing seems certain: the earlier a project could come online or meet the legal requirements for “starting construction,” the better. As a result, Wood Mackenzie predicted there would be a rush of activity to execute on well-positioned projects.
Despite the assault on renewable energy, solar and storage accounted for 85% of all new power added to the grid in the first nine months of the Trump Administration, SEIA said.
A total of 73% of all solar capacity installed this year has been built in states won by President Trump, including 8 of the top 10 states for new installations: Texas, Indiana, Florida, Arizona, Ohio, Utah, Kentucky, and Arkansas.
Despite the remarkable growth so far, “unless this administration reverses course, the future of clean, affordable, and reliable solar and storage will be frozen by uncertainty and Americans will continue to see their energy bills go up,” SEIA president and CEO Abigail Ross Hopper said.
By Tsvetana Paraskova for Oilprice.com
