The 2026 midterm elections delivered resounding victories for Democratic politicians across the U.S., at both the federal and state levels. Solar and energy storage firms around the country have already seen some promising early returns following the electoral shift to the left.

Energy affordability was a major issue in this year’s midterms, according to Tim Pawlenty, president and CEO of the Solar Energy Industries Association (SEIA). The buildout of data centers, alongside continued utility electrification, has created grid strain across the U.S. under the second Trump administration. That strain has sent energy prices up over the course of the past year, giving renewable energy-forward political candidates a solid leg to stand on.

“Energy affordability was a key issue in this election, reflecting the real pressures facing American households and businesses,” Pawlenty says. “The solar and storage industry looks forward to working with newly elected federal and state leaders to bring more affordable, reliable power online and deliver the energy savings Americans are demanding.”

After promising to “drill, baby, drill” on the campaign trail in 2024, President Trump shook the American energy landscape to its core with the One Big Beautiful Bill Act in July 2025, which heavily rolled back renewable energy incentives put in place by the Biden-era Inflation Reduction Act.

Now sporting a Democratic majority in both houses, the new Congress will have a chance to repeal or rework a few of the second Trump administration’s energy policies to be more favorable to renewables.

The solar industry reacts

The potential of this industry-wide ripple effect has already sent a shift through the renewable energy market, according to the Nov. 4 stock market. Yahoo! Finance’s Fiona Craig reports that First Solar, one of the largest solar firms in the U.S. with a market capitalization of about $20 billion, has already seen an 8.1% bump following this year’s midterm results.

Craig says the 8.1% premarket advance “substantially exceeded” other gains across the stock market going into Wednesday’s trading day.

“The rally reflected renewed optimism surrounding the U.S. solar industry, with First Solar attracting buying interest because of its position as a leading domestic manufacturer of thin-film solar modules,” Craig says in a recent report, adding that the Democratic voting wave prompted investors across the energy space to reconsider, or perhaps double down on, their stances on solar and storage.

The American Clean Power Association also expressed renewed optimism in renewable energy at large. Jason Grumet, the trade association’s sitting CEO, echoed Pawlenty’s sentiments about energy affordability and reliability taking center stage in this election.

“Today, the clean power industry directly employs more than 400,000 Americans, and the U.S. has nearly 388 gigawatts of clean power online — enough to power more than 83 million homes — but we’ll need a lot more than that to meet skyrocketing demand,” he says. “Modernizing our outdated permitting process is key to unlocking over $800 billion in new infrastructure and 350+ gigawatts of new clean energy — keeping prices in check and the lights on at home for families and businesses across the country.”

Grumet adds that the work of this Congress is far from over, and that getting elected was simply the start of things. He says his association is looking forward to working on new energy policies with this batch of legislators, specifically with an eye to permitting reform.

— Solar Builder magazine