Solar & Storage Provide Over 90% of All New Power Added to the U.S. Grid in Q1, Despite Headwinds in Washington

The United States added 7.8 gigawatts of new solar capacity in the first quarter of 2026, marking a significant milestone as the country surpassed six million cumulative solar installations. Solar and energy storage accounted for 91% of all new power capacity added during this period, underscoring their dominant role in the nation’s energy landscape despite ongoing regulatory and policy challenges. This growth reflects a strong demand from utilities, businesses, and homeowners seeking reliable and cost-effective energy solutions amid global supply chain disruptions affecting gas and gas turbines. The latest U.S. Solar Market Insight report from the Solar Energy Industries Association (SEIA) and Wood Mackenzie highlights a 15% year-on-year increase in utility-scale solar contracts, partly driven by technology companies aiming to meet the rising electricity demands of artificial intelligence applications. The report also notes that states won by former President Trump accounted for nearly three-quarters of new solar capacity added in Q1, with Texas, Florida, and Ohio among the leaders. This regional distribution indicates a broadening acceptance and deployment of solar energy across diverse political landscapes, reinforcing solar’s role in enhancing American energy security. Industry leaders have expressed concern over federal permitting delays that threaten to stall the sector’s momentum. Darren Van’t Hof, interim president and CEO of SEIA, warned that continued political and regulatory obstacles risk driving up electricity costs and ceding technological leadership to countries like China. With over 450 solar and storage projects currently awaiting permits, the sector faces significant near-term headwinds that could flatten growth despite rising power demand. Michelle Davis, head of solar at Wood Mackenzie, emphasised that while utility procurement is increasing, permitting bottlenecks remain a critical barrier to scaling up capacity. Looking ahead, the residential solar market is expected to contract by 21% in 2026, although growth is forecast to resume steadily from 2027 through 2031. Notably, nearly half of residential solar installations in the first quarter were paired with battery storage, signalling a growing trend towards integrated energy solutions. As the U.S. continues to navigate a complex energy transition, the expansion of solar and storage capacity remains vital for meeting future electricity needs, reducing reliance on volatile fuel markets, and supporting national energy independence.