Solar Electric Power NAICS 221114

Mar 7, 2026 - New Electricity Demand Mostly Met by Solar

• Rising US demand for electricity will mostly be driven by increases in utility-scale solar generation, according to the US Energy Information Administration (EIA). Solar generation is forecast to increase 17% in 2026 and another 23% in 2027. Much of the growth will be in Texas, as the amount of solar electricity supplied to the grid by the Electric Reliability Council of Texas (ERCOT) is expected to increase from 56 billion kilowatt-hours (BkWh) in 2025 to 106 BkWh in 2027. Total US utility-scale solar generation is forecast to rise from 290 BkWh in 2025 to 424 BkWh by 2027. Solar's share of total US electricity generation capacity is forecast to rise from 7% in 2025 to 8% in 2026 and 9% in 2027.
• Prices for solar and wind power purchase agreements in North America each rose nearly 9% in 2025, reflecting growing electricity demand and supply constraints across energy markets, according to LevelTen Energy and reporting by Utility Dive. Some of the sharpest price increases were in the ERCOT market, where wind agreements rose 19% year over year. Analysts say expanding data center development and broader electrification are driving strong demand for renewable power, contributing to rising contract prices and ongoing pressure on energy infrastructure. Uncertainty around tariffs, supply chain rules, and federal permitting changes has also delayed some renewable projects and raised development costs. For the renewable energy development industry, the trends point to continued demand for new projects despite policy and cost challenges. Analysts also noted growing interest in battery storage agreements as energy buyers seek faster deployment timelines and additional grid capacity to support rising electricity consumption.

• Global corporate clean power purchase agreement activity declined for the first time in nearly a decade in 2025, falling 10% to 55.9 gigawatts as rising power prices and policy uncertainty slowed broader market participation, according to BloombergNEF. The market increasingly reflects a divide between large technology companies and other corporate buyers. Meta, Amazon, Google, and Microsoft accounted for 49% of global activity, with Meta and Amazon alone contracting 20.4 gigawatts, including 4.7 gigawatts of nuclear power. The United States remained the largest market with a record 29.5 gigawatts of deals, though the number of unique corporate buyers dropped 51% to 33 as smaller companies pulled back. For the renewable energy development industry, demand remains strong from hyperscalers building data center capacity, while developers are increasingly offering hybrid projects that combine solar, wind, storage, or nuclear to provide more consistent power supply.
• Closed landfills are increasingly being eyed for solar development as communities seek affordable power and developers look for viable sites, but the remaining opportunities are more complex and more expensive to build, according to Waste Dive. Although more than 300 landfills hosted renewable projects in 2024, most of the easiest sites in states with supportive policies are already built out, leaving locations that require costly remediation, complex permitting, or clearer ownership. Developers say landfill solar can take five or more years to complete and demands significant upfront investment, yet rising energy demand and higher electricity prices are boosting interest. Federal incentives, including tax credits for brownfields and community solar, have helped advance projects, but recent policy changes may slow momentum. States and cities could play a larger role by streamlining permitting and offering new incentives as pressure grows to find large, unused parcels suitable for clean energy.