US solar construction hits record highs despite policy uncertainty
Subscribe to our free newsletter today to keep up to date with the latest construction news.
The United States is in the middle of a historic expansion of renewable energy, led by solar power. The Energy Information Administration projects 64 gigawatts of new utility-scale generating capacity this year, surpassing the 58 gigawatts added in 2002 when natural gas plants dominated the grid. What makes 2025 distinct is the overwhelming contribution from clean energy. More than 90 percent of planned additions will come from solar, wind, and battery storage, signaling a shift away from fossil fuels.
This expansion is not happening in isolation. Rising demand for electricity, fueled by transport electrification, industrial growth, and the computing power needs of artificial intelligence, has pushed utilities to build more plants. Solar, with its low costs and fast deployment, is becoming the preferred solution to meet this demand.
Solar leads America’s energy transition
Solar power sits at the center of this transformation. About 12 gigawatts of solar capacity were installed in the first half of the year, with another 21 gigawatts scheduled before year-end. If completed, the 33-gigawatt expansion would mark the largest annual solar buildout in US history. Solar alone will provide more than half of all new capacity.
State-level data shows where this activity is most visible. Texas leads with nearly 10 gigawatts of planned projects in the second half of the year, on top of 3.2 gigawatts already completed. California follows with close to 3 gigawatts slated. Indiana, Arizona, Michigan, Florida, and New York are each expected to deliver more than a gigawatt by the end of the year, underscoring the national reach of this boom.
Battery storage and wind power strengthen the surge
Behind the solar buildout is another record: utility-scale battery storage. Developers plan to install 18.2 gigawatts of batteries this year, almost double the 2024 total. This growth is critical for managing solar’s intermittency, helping utilities supply power even when the sun is not shining. Together, solar and battery storage are expected to make up more than 80 percent of new US capacity additions in 2025.
Wind energy, while expanding more slowly, is expected to add 7.7 gigawatts. Combined with solar and storage, these sources form the backbone of America’s clean energy growth. For the first time, coal and nuclear are absent from new additions, and natural gas is playing only a minor role.
Economic and policy drivers shaping the boom
This surge is driven by both economics and policy. Renewable plants cost less to operate than coal or gas facilities, and their fast deployment suits today’s growing demand. For customers facing higher energy bills, renewables offer long-term cost relief.
Policy is also shaping the pace of construction. Developers are working to complete projects ahead of possible regulatory changes under the Trump administration. Federal tax incentives and state-level renewable requirements have made large-scale projects financially feasible.
Despite record growth, the industry faces significant hurdles. The most pressing challenge is grid interconnection. More than 95 percent of active requests in transmission queues come from solar, wind, and storage projects, yet many face years of delay or cancellation. Nearly 80 percent of proposed projects withdraw before completion, reflecting bottlenecks in permitting and transmission planning.
Sources: