Solar Electric Power NAICS 221114

Jan 7, 2026 - Utility-Scale Solar Posts Q3 2025 Growth, Challenges Remain

• Utility-scale solar developers installed 9.7 gigawatts (GW) of new power capacity in the third quarter of 2025, representing a 26% increase over Q3 2024 and a 68% increase over Q2 2025, according to the Solar Energy Industries Association (SEIA). Growth was led by California, Texas, and Utah, which each installed more than 1 GW of new capacity. However, the passage of the One Big Beautiful Bill Act in mid-2025 reduced tax credit incentives for solar and wind development, and permitting and grid connection challenges persist. In its latest outlook, the SEIA increased its forecast for 2026 utility-scale solar capacity additions by 9% to 36.1 GW. Still, uncertainty regarding permitting for projects on federal lands has clouded projections for 2027 and 2028. The SEIA has revised its outlook for 2027 and 2028 by 10% and 5%, respectively.
• According to a December forecast by the US Energy Information Administration (EIA), US electricity generation capacity is expected to rise by 1.7% in 2026. Increased demand is being driven by large electricity consumers, including data centers, especially in regions managed by the PJM Interconnection and the Electricity Reliability Council of Texas. The EIA's December outlook for generation growth was lower than in the prior month's Short Term Energy Outlook as more large load capacity came online than expected. In 2026, solar power's share of utility-scale generation will rise to 8% compared to 7% in 2025. All other forms of generation will maintain their 2025 shares in 2026, except for coal, which will fall to 16% from 17%.

• Corning’s new silicon ingot and wafer factory in Michigan marks a milestone for US solar manufacturing, enabling domestic production of all major solar supply chain components, according to the Solar Energy Industries Association (SEIA). Since late 2024, US capacity has surged across modules, cells, inverters, and batteries, with solar module output reaching 60 gigawatts (GW), a 37% increase. Solar cell capacity tripled to 3.2 GW, and inverter capacity rose nearly 50%, from 19 GW to 28 GW. Corning expects to scale wafer production to over 1 million units per day, with 80% of its capacity already committed for five years. The US now boasts 23 GW of module capacity, 34 GW of solar cell capacity, 25 GW of inverter capacity, and 95 gigawatts hours (GWh) of battery cell capacity. SEIA calls this a transformative moment for U.S. solar and storage industries.
• In October, the Interior Department canceled Esmeralda 7, a massive solar project in Nevada that would have spanned 118,000 acres and powered nearly two million homes, according to The New York Times. Though the reason was not disclosed, the move aligns with the Trump administration’s broader efforts to slow renewable energy development on public lands, while encouraging oil and gas development and coal mining. The project, led by NextEra Energy and Invenergy, had advanced under the Biden administration but stalled after the Bureau of Land Management withheld its final environmental impact statement. Developers may reapply for permits, but delays are likely. Lawmakers and clean energy advocates expressed concern over new political reviews, which have disrupted wind and solar projects nationwide. The cancellation highlights growing tension between federal energy policy and climate goals.