Solar Electric Power NAICS 221114

Sep 8, 2025 - China Accounts for Two-Thirds of New Solar in First Half of 2025

• In the first half of 2025, global solar installations were 64% higher than the same period in 2024, according to a September report by clean energy think tank Ember. About 380 gigawatts (GW) of new solar capacity came online in the first six months of the year, putting the world on track for another record-setting year of solar expansion. China was the global leader in solar additions in the first half of 2025 with 256 GW, more than double the growth of the rest of the world combined. China accounted for 67% of the worldwide total. India was the second-largest source of new solar additions (24 GW), followed by the US (21 GW), Brazil (7 GW), and Germany (7 GW). In 2024, solar was the fastest-growing source of new energy output, rising 28% over 2023.
• Renewable energy sources accounted for 91% of the 15 gigawatts (GW) of new electricity generation capacity that came online in the first five months of 2025, according to the Federal Energy Regulatory Commission (FERC) and reporting by Utility Dive. At 11.5 GW, solar held the largest share of new capacity additions, followed by wind (2.3 GW) and gas (1.3 GW). However, gas still accounts for the largest share of total electricity generation with 43%, followed by coal (15%), wind (11.8%), solar (11%), and nuclear (7.7%). Despite the Trump administration's favoring oil and gas and rescinding tax credits for renewables development and production, rising demand for electricity is expected to boost renewables. According to FERC, among 133 GW of “high probability” additions projected to be operational by 2028, 84% will come from solar and wind, and 15% from gas.

• Renewable energy industry insiders expect the tax and policy bill signed into law in early July by President Trump to reduce clean energy investments, according to The Wall Street Journal. The Biden-era Inflation Reduction Act created 30% tax credits for renewable energy projects, either on the development side with Investment Tax Credits (ITC) or for producing clean energy with Production Tax Credits (PTC). The credits were to remain available until 2032. The legislation signed in July sunsets the ITC and PTC for wind and solar projects five years early in 2027. The new law also requires projects to have higher levels of US-derived content and increases restrictions on content from foreign entities of concern (FEOC). Princeton University’s REPEAT Project estimates the new law will reduce US electricity and clean fuels production by $500 billion over the next decade.
• Since the beginning of 2025, nearly $15.5 billion in clean energy investments have been cancelled, closed, or scaled back, according to a report released in late June by clean energy advocacy nonprofits E2 and the Clean Economy Tracker. Many of the cutbacks came in anticipation of the Trump administration’s goal to claw back some tax credits created during the Biden administration. Clean energy projects have also faced other headwinds, including inflation, high interest rates, and supply chain snarls that affected project timelines, according to The Wall Street Journal. The E2 and the Clean Economy Tracker report said about $450 million was invested in May across five states for solar, EV, grid enhancements, and transmission equipment, but those investments come well short of offsetting the value of project cancellations.