Is Solar Power Still Growing in the United States?
- What Is the Current Status of Solar Energy in the US?
- Where Is Solar Power Growing the Most?
- Solar Power Trends and Forecasting
- Government Policies Driving Solar Growth
- How Solar Compares To Other Renewable Energy Sources
- Is It Worth Investing in Solar Power for Your Home?
- Frequently Asked Questions
- Final Thoughts
Solar power is no longer a niche solution. It’s a fast-growing, mainstream energy source reshaping the US power grid. Solar capacity continues to surge from sprawling utility-scale solar farms to rooftop panels powering residential homes.
Backed by falling costs, federal incentives, and public demand for clean energy, solar is becoming a cornerstone of the American energy mix. But where is this growth, will it continue, and how does it compare to other renewables? Let’s explore.
What Is the Current Status of Solar Energy in the US?
Solar energy is now a significant part of the US energy grid. But is it increasing or in decline? Let’s take a look:
Is Solar Energy Increasing or Decreasing?
Solar energy is rapidly increasing worldwide, showing significant capacity rises year after year. Despite concerns over shifting policies in the USA, the momentum behind renewables continues to grow steadily, with commercial solar farms still expanding across the USA.
According to the US Energy Information Administration, 63 gigawatts (GW) of new utility-scale electric-generating capacity will be added in the US in 2025. Solar and battery storage account for 81% of the capacity increase, with solar making up over 50%.
What about residential solar power? The same holds; we are currently in the midst of a residential solar power revolution. Homeowners nationwide are adopting it as a cost-effective green energy alternative to reduce their carbon footprints, reduce or eliminate their electrical bills, and increase the value of their homes. Even if the federal incentives diminish in the future, solar power still remains a wise investment.
Where Is Solar Power Growing the Most?
U.S. States Using the Most Solar Power
In the USA, Texas and California use the most solar power. They are expected to account for almost half of the new utility-scale capacity additions in 2025. Other states that are rapidly expanding their capacity include Indiana, Arizona, Michigan, Florida, and New York.
Residential Solar vs. Utility-Scale Solar
Utility-scale solar is the large solar farms that most of us have seen popping up nationwide. These farms supply our electrical grid, which is experiencing phenomenal growth in terms of energy supplying our electrical grid.
The growth in residential systems mirrors that of utility-scale, with rapid, unprecedented growth. As more and more people install EcoFlow Solar Panels on their homes, they join the renewable energy revolution and save significant cash.
Regarding residential solar, Texas is leading the country in new installations. However, California still holds the largest market for residential customers, although Texas is gaining ground. Other states showing rapid growth include Florida and Arizona.
Solar Power Trends and Forecasting
According to the US Energy Information Administration, a record 30GW of utility-scale solar was added to the grid in 2024, accounting for 61% of all capacity additions last year. In 2025, we expect to add another 32.5GW of new utility-scale capacity. Almost half of that is in Texas (11.6GW) and California (2.9GW). Despite uncertainties in policy around renewable energy, the industry is not slowing down.
Globally, the solar industry saw strong growth in 2024. While that rapid growth has currently stabilized, another 493GW capacity is still expected to come online in 2025.
Solar's growth will continue in the long term. That growth is driven by the need to replace fossil fuels to combat climate change. However, we must simultaneously scale up green energy production to meet the growing needs of data centers and AI, as well as the increasing trends in electrification in transportation and other sectors. Therefore, solar is here to stay.
Government Policies Driving Solar Growth
Governments offer tax credits and rebates to offset the cost of new solar installations, which helps make them more affordable for homeowners and businesses. For example, the Federal Solar Investment Tax Credit (ITC) allows a 30% tax credit for installation costs that can be deducted from federal taxes that are owed.
In two years of the Inflation Reduction Act, 75GW of new capacity was added to the electrical grid, and nearly 1.5 million homes in America installed residential solar panels. Despite current uncertainties over the IRA in the long term, homeowners are now more aware of this program than ever and can still take advantage of it.
Other policies include various loan and grant programs designed to reduce the upfront costs of renewable energy systems, making them more accessible to those on a budget. State and local governments or non-profit societies typically offer these.
Finally, Feed-in Tariffs (FITs), typically set by government agencies or public utility commissions, allow you to sell the excess energy you produce back to the grid in exchange for credit on your electrical bill. While these vary from region to region, many homeowners nationwide are receiving significant credits.
When you install one of the EcoFlow Solar Generators, you will immediately save significant money on your electrical bill. Then, you can deduct a substantial portion of your installation fees from your federal tax debt. If FITs are available in your area, you can even generate income from your system and save even more money.
EcoFlow DELTA Pro 3 Portable Power Station
How Solar Compares To Other Renewable Energy Sources
Let’s examine how solar energy compares to other renewables in terms of cost, availability, and growth in the USA.
Wind
While residential solar costs about $10,000 to $40,000 to install, wind is typically twice that, costing anywhere between $20,000 and $80,000 for a residential system. Wind is also more location-dependent, making it unsuitable in many regions.
Despite recent holds on new offshore wind construction, two large offshore wind plants will come online in 2025 in Massachusetts and Rhode Island. We expect 7.7GW of wind capacity to be added to the grid in 2025, up from 5.1GW in 2024. Texas, Wyoming, and Massachusetts will account for almost half of the new 2025 additions.
Geothermal
On average, geothermal residential systems in the USA can cost from $15,000 to $45,000. However, geothermal's biggest problem is that it’s highly dependent on location. Only California, Oregon, Nevada, and parts of Arizona and New Mexico are really suitable for geothermal in the USA. Even there, it’s not accessible for all properties due to the need to drill and excavate.
The US Department of Energy’s Enhanced Geothermal Shot was created to reduce the cost of geothermal energy by 90% by 2035. While much of geothermal energy is aimed at heating and cooling solutions, it still has significant potential, with particular benefits for rural communities. Another bonus is that geothermal and the oil and gas industry share many similarities, including skills and equipment, allowing fossil-fuel-dependent communities to transition more easily to clean energy.
Hydropower
Hydropower is also more costly than solar, averaging between $15,000 and $55,000 for a 5kW system. While it’s an excellent, renewable source of consistent clean energy, like geothermal, it’s also heavily dependent on location. Only properties with sufficient running water flowing through them, without restrictions on being able to use that water source, are suitable. Still, hydropower is an essential component of our future clean energy mix.
In terms of growth, US utility-scale hydro has been stable for some time. An aging fleet and the need for modernization currently challenge the industry. However, the mini hydropower sector (101 kW to 10 MW) accounted for 63.9% of hydropower revenue in 2024, and is growing yearly.
Microhydro for residential use (< 100kW) is also experiencing significant growth, especially in rural and remote areas where the grid is more limited. It is expected to grow at a CAGR of 3.3%.
Biomass
Biomass uses wood and wood processing waste, agricultural crops and waste, municipal solid waste, animal manure, and other biogas as an energy source. In 2023, it accounted for about 5% of our total primary energy consumption for heating, electricity generation, and transportation.
Most residential sectors using biomass use firewood and wood pellets for heating, accounting for 9% of biomass production. The industrial sector accounted for 45%, and transportation accounted for 36% of production.
While biomass still produces carbon emissions, using waste products as fuel can be a greener way to get energy. While it’s not expected to grow significantly, it will continue to be a part of our energy future.
Ocean Energy
Ocean energy comes in many forms, including wave energy, tidal energy, ocean current energy, and Ocean Thermal Energy Conversion (OTEC). While entirely renewable, this form is the most limited geographically since it can only be produced in the ocean and is currently unavailable to residential users.
The USA does not currently have commercial-scale wave, tidal, or ocean current energy production. However, wave and tidal research and tidal demonstration projects are online or coming online in New York and Maine, showing promise for the future.
Ocean thermal energy conversion produces energy using temperature differences between the ocean surface and deep waters. Hawaii is the main viable location for this, and it has had a laboratory model in operation since 1974, the first of its kind. A 105 kW demonstration plant came online in 2015 and has been supplying electricity to the local grid. While it will take time for OTEC capacity to grow and is the most limited in viability geographically, it’ll still be part of our energy future.
Is It Worth Investing in Solar Power for Your Home?
Home solar power is a wise investment, lowering or even eliminating electric bills. After the solar payback period, roughly 8 years, when the savings on your electrical bills pay for installing your system, you can have free energy for 20 years.
You can also increase your home value. According to Zillow real estate research, homes with solar on average sell for 4.1% more than comparable homes without. Those numbers can rise dramatically in places like New England and California, which have higher electricity rates.
Other benefits include lowering your carbon footprint and reducing your environmental impact. Solar panels can also look aesthetically pleasing on a roof. Ground-mounted solar is highly productive in dry climates and creates essential shade for livestock and gardens.
Investing in an EcoFlow DELTA Pro 3 Solar Generator (PV400W), which starts at 4000W of output, can produce enough energy to supplement your home and provide essential power during blackouts. Thus, you will always have power even when the grid goes down.
The generator is also expandable with additional batteries, so you could eliminate your electrical bills altogether and gain complete energy independence, disconnecting from the grid if you want.
Frequently Asked Questions
Is the Solar Industry on the Verge of Collapse?
Despite fears over shifting policies around renewable energy, nothing could be further from the truth. An overproduction of panels did result in declining prices, and some manufacturers struggled. Still, the industry is expected to grow by 34% in 2025. Solar is here to stay.
Are Solar Panels Being Phased Out?
No, solar panels are not being phased out. Certain older models, like P-type and polycrystalline models, are either being phased out or declining in production, but that is only because newer, more efficient N-type and monocrystalline models are becoming more widely available. The solar industry is expected to grow 34% in 2025.
Is Solar Energy Increasing or Decreasing?
Despite worries over policy shifts in renewable energy, the solar energy industry is still growing dramatically worldwide and in the USA. In 2025, the industry in the USA is on target to grow 34% over last year, an unprecedented increase.
Final Thoughts
Solar power in the United States is not only growing, it’s accelerating. With Texas and California leading the charge, residential and utility-scale installations are reaching new records. Backed by supportive policies such as the ITC and the Inflation Reduction Act, which are still available, homeowners can access unprecedented financial incentives to go solar.
When compared to other renewables, solar remains the most accessible and cost-effective option for most Americans. Investing in a system like the EcoFlow DELTA Pro 3 Solar Generator (PV400W) offers energy independence, long-term savings, and resilience, especially when the grid goes down.