Solar Electric Power

The 175 solar electric power companies in the US operate solar electric power generation facilities that use energy from the sun to produce electricity, which is provided to electric power transmission systems or electric power distribution systems. Utility-scale solar is generally defined as a facility with generation capacity of one megawatt (MW) or more, which is sold to utilities or wholesale electricity buyers.

Dependence on Geographical and Seasonal Factors

Production and capacity factors are affected by geographical and seasonal considerations.

Reliance on Government Incentives

While solar development costs have fallen, incentives are often needed to spur companies, consumers, and communities, to make investments in solar power.

Sep 8, 2026 - Tariffs, Minimum Import Prices to Reduce Solar Cell Imports

• New Section 232 tariffs and minimum import prices on silicon products are pushing US solar module prices back toward 2023 levels, according to clean energy advising firm Intertek CEA, as reported by PV Magazine. The rules, effective December 4, set minimum prices of 38 cents per watt for imported modules and 22 cents per watt for cells, while adding a 15% tariff. Combined with existing tariffs, the measures have driven module spot prices to about 46 cents per watt. Intertek CEA analysts expect the policy to sharply reduce module imports and make US assembly using imported cells the dominant model beginning in 2027. Vertically integrated manufacturers may benefit most, while independent assemblers could face higher cell costs. Longer term, expanding domestic assembly capacity and increased competition could bring module prices closer to 30 cents per watt, although policy uncertainty and import delays remain risks.
• Trump administration energy policies could reduce new US wind, solar, and energy storage capacity by 390 GW to 540 GW over the next decade, according to projections from the Natural Resources Defense Council (NRDC) and Utility Dive reporting. The policies include reduced Inflation Reduction Act tax credits, new tariffs, and offshore wind lease buybacks. NRDC estimates only about 9 GW of additional gas capacity would offset those losses, citing turbine supply constraints, volatile fuel prices, and renewable energy's cost advantages. An August Global Energy Monitor report identified 189 GW of proposed or developing US gas-fired capacity, but many projects face equipment, financing, permitting, and local opposition challenges. NRDC projects that greater reliance on existing fossil fuel plants could raise power-sector fuel costs by $5 billion to $15 billion and increase average household electricity rates by an additional 4.2% to 5.5% by 2035.
• Canary Media reports that, according to the US Energy Information Administration, solar, battery storage, and wind accounted for 90% of new US power capacity built in the first half of 2026, despite federal policy changes that have raised costs and created permitting challenges for renewable energy projects. Solar and batteries alone accounted for more than two-thirds of the capacity added from January through June. Texas led the nation in solar, storage, and overall power plant construction, while New Mexico ranked second, helped by the completion of the 3.65-gigawatt SunZia wind project. Arizona ranked third amid continued solar and storage development. Although proposed large natural gas plants tied to rising data center demand could alter the mix, solar and storage are expected to remain major sources of new generating capacity.
• FMI's 2026 Energy and Power Overview reports that construction of renewable and alternative power projects is expected to grow at an 8.7% CAGR from 2026 to 2030, led by utility-scale solar and battery storage. Solar remains the dominant source of new renewable capacity because of its low cost and relatively fast deployment. US solar additions reached about 30 GW in 2024, rose by another 29 GW in 2025, and are forecast to average about 25 GW per year through 2030. However, solar developers face growing headwinds from the phaseout of wind and solar tax credits under the One Big Beautiful Bill Act, solar module tariffs, expanded foreign entity rules, and persistent permitting delays. Battery storage growth should support solar deployment, but interconnection bottlenecks and policy uncertainty could slow some projects.

Industry size & Structure

The average solar power generator employs about 30 workers and generates about $9.8 million annually.

• The solar power generator industry consists of about 175 firms that employ about 5,200 workers and generate about $1.7 billion annually.
• The industry is highly concentrated; the top 20 companies account for 77% of industry revenue.
• Large firms include First Solar, EcoPlexus, Avantus, and AES Corporation.