US solar installation forecast slashed due to Trump policies,

The U.S. solar industry could install 27% less capacity between 2026 and 2030 compared with projections made before President Donald Trump’s tax law rolled back key subsidies, according to a report released Monday by the Solar Energy Industries Association (SEIA) and research firm Wood Mackenzie.

The trade group warned that Trump’s policies are hindering the growth of clean energy, a sharp contrast to former President Joe Biden’s climate agenda, which positioned renewables at the center of U.S. energy transition efforts. “Instead of unlocking this American economic engine, the Trump administration is actively discouraging investment, driving up energy costs for households and businesses, and undermining the reliability of the electric grid,” SEIA President and CEO Abigail Ross Hopper said.

Despite policy headwinds, solar and storage still represented 82% of new U.S. electricity capacity in the first half of 2025. Domestic solar module production also expanded, rising by 13 GW in the same period to reach 55 GW in total. Notably, more than three-quarters of solar projects installed this year have been concentrated in Republican-led states such as Texas, Indiana, and Florida.

Costs across the sector have been climbing, however, due to tariffs on imports and rising permitting and overhead expenses. Utility-scale solar prices increased by 4% in the second quarter of 2025, while residential system costs rose by 2% and commercial installations surged by 10%.