WASHINGTON: The US solar industry installed 11.7 gigawatts (GW) of new capacity in the third quarter of 2025, marking a 49% sequential increase, according to a report by the Solar Energy Industries Association (SEIA) and Wood Mackenzie released on Tuesday.
Solar accounted for 58% of all new electricity-generating capacity added to the US grid through Q3, with more than 30 GW installed year-to-date. Most of the gains were driven by utility-scale projects largely completed in the second quarter.
The surge comes amid ongoing uncertainty caused by the One Big Beautiful Bill Act (OBBBA), which ties tax credits and bonus incentives to project construction start dates and operational timelines. Residential solar was most affected, declining 4% year-on-year in Q3.
Permitting delays remain a critical bottleneck, with more than 117 GW of solar and storage projects currently stalled. Sean Gallagher, SEIA’s senior vice president of policy, warned that federal regulatory hurdles could prevent these projects from coming online unless policies are adjusted.
The SEIA also lowered its near-term residential solar outlook for 2025 and 2026 by 2% and 8%, respectively, citing tight solar module supply and continued permitting challenges.
By Reuters
