The U.S. solar industry is projected to provide half of annual additions to the electric grid through mid-century despite the rollback of tax credits and Trump administration funding cuts, according to a new report.
The upped forecast from research firm Wood Mackenzie and the Solar Energy Industries Association on Tuesday suggests surging electricity demand and cost pressures facing natural gas and other competing resources are helping to buoy solar power. Overall, U.S. solar capacity is now expected to nearly triple by 2036, rising from 279 gigawatts in 2025 to 769 gigawatts.
“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, in a statement. “Strong demand growth combined with escalating costs of new gas plants will allow solar to remain competitive, even without tax credits.”
Yet multiple uncertainties are facing the industry, including the Iranian war.
