There are more ways than words in this sentence in which the Trump administration has tried to inhibit clean energy growth in the United States. The honey badger don’t care.

Despite the loss of tax incentives, the addition of last-minute tariffs, and roadblocks of all ilk set up in favor of fossil fuel interests, the U.S. solar industry installed 43 gigawatts (GW) of new capacity in 2025, remaining the primary source of new capacity added to the grid for a fifth consecutive year.

Solar and energy storage represent 79% of new capacity installed in the first year of the second Trump administration. What’s more, according to the freshly released U.S. Solar Market Insight 2025 Year in Review report, put together by the Solar Energy Industries Association (SEIA) and Wood Mackenzie (WoodMac), is that more than two-thirds of all solar capacity installed in 2025 was built in states won by President Trump. Texas, Indiana, Florida, Arizona, Ohio, Utah, and Arkansas all rank among the top-10 states for solar additions last year.

“Solar and storage continue to dominate new capacity additions to the grid despite policy headwinds. American households and businesses of all sizes are demanding solar + storage because they deliver fast, affordable power to help meet rapidly rising demand,” assessed Darren Van’t Hof, interim president and CEO of SEIA. “Washington must deliver policy certainty for the market to work and to keep pace with growing energy demands. Without this certainty, less solar will get built, and Americans will pay the price with higher energy bills.”

Texas, which is set to overtake California in 2026 as the largest energy storage market in the country, continued its dominance as the fastest-growing solar state, leading the U.S. with 11 GW of new installations. 11 states set new annual installation records in 2025, and a dozen added more than 1 GW of new solar capacity. In particular, deployment in Indiana and Utah has skyrocketed, with Indiana deploying nearly 3 GW, up from 1.6 GW in 2024.

Fast, Affordable Power to Meet Rising Demand

Despite regulatory actions targeting clean energy and changing tax policy, the economics of solar remain strong, according to SEIA and WoodMac, making the technology one of the few solutions that can quickly meet surging electricity demand driven by data center growth. The U.S. is expected to add 490 GW of new solar capacity by 2036, bringing cumulative installed capacity to nearly 770 GW.

“It’s clear that solar will continue to be the dominant source of new power capacity in the United States, even as gas generation continues to grow,” said Michelle Davis, head of solar at Wood Mackenzie and lead author of the report. “Strong demand growth combined with escalating costs of new gas plants will allow solar to remain competitive, even without tax credits.”

The report forecasts include scenarios showing how policy changes could impact the solar market. Final guidance on Foreign Entity of Concern (FEOC) provisions, the outcome of pending trade actions, and the ability to secure permits will determine how much solar capacity ultimately comes online. In particular, the residential sector is facing headwinds due to changes in tax policy in 2025.

SEIA and Woodmac predict that restrictive policy will slow solar deployment, tightening overall power supply and putting upward pressure on electricity prices. Utility-scale solar is one of the most cost-effective forms of new energy generation, they point out, and home solar and battery storage remain one of the few ways Americans can take control of their energy bills.