Solar Electric Power NAICS 221114

Unlock access to the full platform with more than 900 industry reports and local economic insights.
Get access to this Industry Profile including 18+ chapters and more than 50 pages of industry research.
Industry Summary
The 380 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
Because the cost of solar power exceeds the cost of power furnished by the electric utility grid in most locations, the industry relies on government incentives, mandates, and policies that support investment in alternative energy sources.
Recent Developments
May 7, 2025 - Power Project Spending to See Steady Growth Through 2029
- North American construction and engineering spending in the power sector in 2025 is expected to grow by 6% and notch robust annual growth through 2029, according to FMI’s second-quarter 2025 North American Engineering and Construction Outlook. While the Trump administration is emphasizing natural gas and oil production, the ongoing electrification of transportation and manufacturing, as well as voracious demand from data centers, will increase demand from all electricity sources except coal. To power their data centers, technology firms are making investments in clean energy microgrids, nuclear energy, and battery storage systems. According to the 2024 US American Society of Civil Engineers’ infrastructure Report Card, 20% - or about $2 trillion – of the US’s total infrastructure needs through 2023 are related to energy. FMI forecasts that energy construction and engineering spending will rise 5% in 2026, 3% in 2027, 4% in 2028, and 6% in 2029.
- More clean energy-related projects are being paused, downsized, or cancelled due to policy shifts under the Trump administration, according to Manufacturing Dive. In the first quarter of 2025, companies announced $8 billion in project downsizing and cancellations, according to E2, a clean-energy nonprofit that tracks and releases monthly updates on green energy project announcements. In all, 16 projects were cancelled in the first quarter, including solar, wind, and electric vehicle plants. After the passage of the Inflation Reduction Act (IRA) in 2022, the law’s tax credits for clean-energy manufacturing projects and direct funding and loan financing attracted billions in climate-related investments. However, on his first day in office, President Trump froze funding under the IRA pending government review. Trump has been critical of EV tax credits under the IRA, as well as a Biden-era executive order calling for EVs to make up half of US auto sales by 2030. The clean energy sector is also bracing for the impact of tariffs, which would drive up project costs for key inputs, including EV battery and solar cell components.
- Solar component costs are expected to rise and supplies will tighten as tariffs push buyers to seek domestically produced products, according to consultancy Anza Renewables’ Q2 2025 Domestic Content Insights report and reporting by Utility Dive. While some US solar product manufacturers are ramping up production, logistical and financial restraints are causing others to pause their planned expansions. While the Trump administration has paused reciprocal tariffs until July 8th, it has imposed a flat 10% tariff on most imports, and a 145% levy on imports from China. Shifting trade policies have prompted US solar manufacturers, buyers, and developers to delay procurement choices and recalibrate supply chain strategies. Anza expects market uncertainties to weigh on US solar manufacturing growth. While the number of US-based solar module suppliers could rise to as many as 10 by 2027 compared to five today, the number of solar cell suppliers is expected to remain relatively flat, rising to only 18 from 17 over the same period.
- US electricity generation capacity additions in 2025 are expected to be led by solar and battery storage projects, according to the US Energy Information Administration (EIA). The US is projected to add 63 gigawatts (GW) of generating capacity in 2025, led by utility-scale solar with 32.5 GW, followed by battery storage (18.2 GW), wind (7.7 GW), and natural gas (4.4 GW). Additions in Texas (11.6 GW) and California (2.9 GW) will account for nearly half of the solar capacity additions in 2025. Other states that are expected to have significant upticks in solar additions in 2025 include Arizona, Florida, Indiana, Michigan, and New York. US electricity generation capacity additions in 2025 are expected to be led by solar and battery storage projects, according to the US Energy Information Administration (EIA). The US is projected to add 63 gigawatts (GW) of generating capacity in 2025, led by utility-scale solar with 32.5 GW, followed by battery storage (18.2 GW), wind (7.7 GW), and natural gas (4.4 GW). Additions in Texas (11.6 GW) and California (2.9 GW) will account for nearly half of the solar capacity additions in 2025. Other states that are expected to have significant upticks in solar additions in 2025 include Arizona, Florida, Indiana, Michigan, and New York.
Industry Revenue
Solar Electric Power

Industry Structure
Industry size & Structure
The average solar power generator employs about 13 workers and generates about $5 million annually.
- The solar power generator industry consists of about 380 firms that employ about 4,800 workers and generate about $2 billion annually.
- The industry is highly concentrated; the top 20 companies account for 88% of industry revenue.
- Large firms include First Solar, EcoPlexus, Avantus, and AES Corporation.
Industry Forecast
Industry Forecast
Solar Electric Power Industry Growth

Vertical IQ Industry Report
For anyone actively digging deeper into a specific industry.
50+ pages of timely industry insights
18+ chapters
PDF delivered to your inbox