REPORT: Solar and Storage Dominate New Power Additions in First Six Months of Trump Administration as Federal Policies Drive Up Energy Costs
LAS VEGAS and WASHINGTON, D.C. — In the first half of 2025, the U.S. solar industry achieved a milestone that demonstrates its resilience and importance to the nation’s future. Nearly 18 gigawatts (GW) of new capacity were installed, even as the Trump administration introduced a series of anti-clean energy policies. Despite these headwinds, solar and energy storage still accounted for 82% of all new power added to the U.S. grid during the administration’s first six months.
This outcome shows that no matter the political environment, solar and storage remain the fastest-growing energy sources in America. They are reliable, affordable, and increasingly demanded by consumers, businesses, and communities that see renewable energy as the pathway to lower costs and long-term energy independence.
Federal Policies and the HR1 Impact
Federal policies can either accelerate or slow renewable growth, and the current policy environment has introduced new obstacles. The One Big Beautiful Bill Act (HR1), along with additional executive actions, has disrupted solar deployment forecasts. According to the U.S. Solar Market Insight Q3 2025 report from SEIA and Wood Mackenzie, these measures could cost the United States 44 GW of solar capacity by 2030, an 18% decline compared to earlier projections.
The damage could be even deeper. When measured against pre-HR1 expectations, the U.S. risks losing 55 GW of solar deployment by 2030—a 21% decline. That reduction represents millions of households missing out on clean energy, thousands of lost jobs, and billions of dollars in stalled private investment.
Why Solar and Storage Remain America’s Energy Backbone
Despite these setbacks, the fundamentals of solar and storage remain strong. As SEIA President and CEO Abigail Ross Hopper noted, “Solar and storage are the backbone of America’s energy future, delivering the majority of new power to the grid at the lowest cost to families and businesses.”
The reasons are clear:
- Solar delivers stable, predictable costs, unlike fossil fuels that are subject to global price swings.
- Storage technologies increase grid reliability, preventing blackouts and strengthening energy security.
- The industry supports hundreds of thousands of U.S. jobs while revitalizing local economies.
- Solar and storage help build American-made energy solutions, reducing reliance on imports.
Together, solar and storage do more than keep the lights on. They create resilient communities, competitive businesses, and energy systems that can withstand policy changes and global pressures.
Solar Growth Across Trump-Won States
One of the most striking findings in the SEIA-Wood Mackenzie report is that the majority of solar growth has occurred in states that supported President Trump. This highlights the nonpartisan value of solar power. People in red and blue states alike are investing in solar because it makes economic sense.
According to the report, 77% of all solar capacity installed this year has been built in Trump-won states. This includes eight of the top ten states for new solar installations:
Texas, Indiana, Arizona, Florida, Ohio, Missouri, Kentucky, and Arkansas.
This pattern confirms that solar’s benefits transcend politics. Whether in rural or urban areas, homeowners and businesses are choosing solar because it cuts utility bills, provides energy independence, and brings jobs to local communities.
Strengthening U.S. Solar Manufacturing
Another key development in 2025 is the rapid growth of domestic solar manufacturing. In the first half of the year alone, the U.S. added 13 GW of new solar module manufacturing capacity, with factories expanding in Texas, Indiana, and Minnesota. This progress brings the nation’s total solar manufacturing capacity to 55 GW.
By building a stronger manufacturing base, the U.S. reduces its reliance on foreign supply chains and positions itself as a global leader in clean energy. Domestic factories mean more American jobs, stronger local economies, and enhanced energy security.
However, this momentum is fragile. The second quarter of 2025 saw no new upstream manufacturing investment, as federal policies discouraged capital inflows. Without clear and supportive rules, billions of dollars in private investment could remain on the sidelines. The message is clear: stable policy is essential to unlock the full potential of solar manufacturing.
Deployment Outlook: Short-Term Strength, Long-Term Risks
Looking ahead, the report forecasts that solar deployment will be 4% lower than the pre-HR1 base case by 2030. Near-term growth is supported by projects already under construction, strong consumer demand, and a rush to qualify for tax credits. Additionally, as natural gas becomes more expensive and less available, solar looks increasingly attractive.
Yet significant risks remain. New executive actions have singled out solar for tougher permitting standards. The Department of the Interior (DOI) has introduced orders that could obstruct as much as 44 GW of planned solar projects, with states like Arizona, California, and Nevada being the most affected.
Policy Uncertainty and Industry Response
Industry experts have warned that these developments could significantly disrupt growth. Michelle Davis, head of solar research at Wood Mackenzie, explained: “There is considerable downside risk for the solar industry if the federal permitting environment creates more constraints for solar projects. The solar industry is already navigating dramatic policy changes as a result of HR1. Further uncertainty from federal policy actions is making the business environment for the solar industry incredibly challenging.”
In response, SEIA has engaged directly with policymakers. The organization recently wrote to DOI Secretary Doug Burgum, warning that unless these executive actions are reversed, they will result in lost jobs, higher electricity prices, and a less competitive American economy.
The Bigger Picture: Energy, Economy, and Global Competitiveness
If forecasts hold and solar deployment contracts, the consequences will go beyond higher energy bills. The U.S. could also fall behind in the global race for technological leadership. As the world moves toward renewable energy and digital innovation, clean energy capacity is tied directly to economic competitiveness and national security.
In fact, SEIA’s recently released grid reliability policy agenda emphasizes that solar and storage are not optional—they are critical to meeting rising demand while ensuring America’s electric grid remains strong and dependable. Local, state, and federal leaders must recognize that clean energy investments are investments in the economy, workforce, and stability of the country.
Conclusion: The Path Forward
The first half of 2025 proves that solar and storage can thrive even in difficult circumstances. They are dominating new power additions, driving domestic manufacturing, and delivering benefits to states across the political spectrum. But to unlock their full potential, the U.S. must ensure a stable policy environment that encourages investment and innovation.
At AmeriSol Energy Solutions (formerly American Solar Distributors), we believe that the future of U.S. energy is bright. Solar and storage are not just powering homes and businesses—they are powering opportunity, independence, and resilience. With the right support, the solar industry can continue to lead America toward a cleaner, stronger, and more affordable energy future.