In the last few years, solar has been the single most dominant new energy resource in the US, accounting for more new capacity than all other forms of energy. This is due in part to advancements in the technology, as well as significant cost declines, which have combined to allow solar to flourish despite an ever-evolving regulatory landscape. As we head into a new year and a recent Presidential transition, let’s dive into our predictions for the solar industry in 2025. From strengths and new use cases to potential roadblocks, here’s where we see solar heading.

Energy Security and Independence

U.S. energy independence has been the focus of policy discussions in recent years, driven by an urgency to reduce reliance on foreign fuels and bolster domestic energy production. But, such goals can only be accomplished through sustained investments in solar energy in the United States. Solar continues to prove itself as an inexpensive energy source that can be deployed anywhere in the U.S., making its presence in our future energy mix undeniable.

Growth Trends: According to the Department of Energy, solar is projected to make up 58% of total new electricity generation in the United States in 2024. As we head into 2025, the United States Energy Information Administration is predicting that 26 gigawatts of new solar capacity will be added this year, marking a 34% increase in domestic solar generation.

As energy demand continues to grow, the role of solar in domestic energy production cannot be overstated.

Growing Energy Demand

Energy-intensive industries such as artificial intelligence (AI) have seen rapid growth in recent years, placing an unprecedented strain on the United States power grid. With companies like Microsoft announcing billion-dollar investments in data centers in 2025, this industry alone is responsible for an exponential increase in energy demand in the coming decade. Solar offers a scalable and affordable option to meet these growing needs.

Energy Needs: 2024 is projected to see the highest global growth in energy demand since 2007. In the US alone, energy demand was up 2% in 2024 and is expected to continue to grow at 2% in 2025 and 2026. 

Effective Solutions: Utility-scale solar projects, combined with ever-improving energy storage technologies, are a promising cornerstone of future energy generation. Such projects help support grid stability and store excess energy that can be delivered during times of peak demand.

Integrating solar with storage is critical for the 24/7 energy demand from data centers, AI, and other energy-intensive operations. Together, solar and storage represent the only quick-to-deploy, dispatchable solution for the United States’ evolving energy mix.

Domestic Manufacturing for Renewables and Job Creation

While solar can play an important role in supporting the energy needs of new industries in the U.S., it is also a growing industry itself. Since its passage in 2022, the Inflation Reduction Act (IRA) has supported significant investments in renewable energy manufacturing.

Economic Impact: Domestic manufacturing tax credits under the IRA have supported a localized supply chain. This investment in domestic manufacturing has enabled national job growth, creating over 100,000 manufacturing jobs since the IRA’s passage and leading to the opening or expansion of over 115 manufacturing facilities dedicated to renewables.

The IRA’s incentives for domestic content have not only resulted in significant new built out of US solar capacity but have also proved effective at rapidly onshoring clean energy supply chains and creating thousands of new jobs—benefits we anticipate will continue to be felt into 2025 and beyond.

2024 Trends to Watch Recap

As we continue to head deeper into 2025, we expect momentum behind solar energy to build, driven by a renewed focus on energy independence, increased energy demand, and technological advancements. Here’s an overview of the trends we expect to see.

Energy independence: Solar will continue to be a key component of U.S. energy independence, as we work to reduce reliance on foreign fuel sources. With 26 gigawatts of solar capacity expected to be added in 2025, solar will continue to positively contribute to grid resilience and energy affordability while promoting energy independence.

Growing energy needs: With AI and data centers pushing us toward record-breaking energy consumption, utility-scale solar projects, paired with ever-improving energy storage solutions, will play a key role in effectively meeting this elevated demand.

Domestic manufacturing & job creation: The Inflation Reduction Act continues to accelerate domestic solar manufacturing and job growth. The growth in clean energy jobs and renewable energy manufacturing facilities is indicative of the long-term economic benefits of a domestic solar supply chain.

In 2025, the question is not whether we should deploy more solar, it is abundant, affordable, and can be deployed at scale, proving itself as an essential part of our energy future. As demand for energy grows rapidly, this indispensable industry is poised to meet energy needs and drive economic growth if we invest in scaling appropriately.

We are excited to see what the future of solar energy in 2025 looks like and are optimistic that it will be bright. With solar, the United States is well positioned to continue to lead in domestic energy deployment and innovation while supporting local economic growth.