SEIA And Wood Mackenzie Report Shows US Solar Leads New Power Additions With 7.8 GW Installed In First Quarter Of 2026

The United States added 7.8 gigawatts (GW) of new solar capacity in the first quarter of 2026, reinforcing solar power’s position as the country’s leading source of newly installed electricity generation. The sector continued to expand rapidly, pushing total cumulative solar installations in the U.S. past 6 million systems.

According to the U.S. Solar Market Insight 2026 Q2 Report published by the Solar Energy Industries Association (SEIA) and Wood Mackenzie, solar and energy storage together accounted for 91% of all new power capacity added to the grid during the quarter. This strong share reflects continued demand from utilities, households, and businesses seeking reliable and cost-effective energy solutions, particularly in the context of global disruptions affecting gas supply chains and gas turbine availability.

The report highlights that utility-scale solar contracts increased by 15% year over year. A key driver of this growth has been rising electricity demand from technology companies, especially those expanding artificial intelligence (AI) infrastructure, which requires significant and rapidly scalable power resources.

Despite changes in tax policy and regulatory uncertainty affecting clean energy development, the overall industry outlook has been revised upward due to sustained demand growth. Solar and energy storage are increasingly viewed as strategic assets for energy security, as they can be deployed quickly and are not exposed to fuel price volatility, unlike conventional thermal generation.

The report also notes strong geographic concentration of new installations. States that supported former President Donald Trump accounted for 74% of all new solar capacity added in Q1. Texas, Florida, Ohio, Indiana, Michigan, Arizona, and Mississippi were among the top-performing states for solar deployment during the period.

Darren Van’t Hof, interim President and Chief Executive Officer of the Solar Energy Industries Association, said that energy buyers are increasingly prioritizing solar and storage due to their speed of deployment, lower costs, and ability to enhance energy security. He noted that these technologies represented the vast majority of new capacity additions during the quarter, but warned that policy and regulatory challenges are slowing deployment at a time when electricity demand is rising sharply.

The report also raises concerns about federal permitting delays. SEIA estimates that 457 solar and energy storage projects are currently awaiting permits and could face delays or cancellations due to regulatory bottlenecks. The industry warns that continued delays in project approvals could increase electricity costs for consumers and weaken the United States’ competitive position in emerging technologies such as artificial intelligence, where reliable power supply is critical.

Michelle Davis, Head of Solar at Wood Mackenzie, said that U.S. solar additions are expected to remain relatively flat over the next five years, despite strong demand signals and increased procurement activity in utility resource planning. She noted that permitting constraints remain a significant near-term barrier to faster deployment, even as long-term growth prospects remain intact between 2027 and 2031.

On a state level, Texas continued to lead as the fastest-growing solar market in the country, while Ohio emerged as one of the top three states for new solar capacity additions in the quarter. Other states, including Michigan, Oregon, and Mississippi, also recorded strong growth in solar installations.The residential solar segment is expected to decline by 21% in 2026 due to market pressures and policy uncertainty.

However, long-term forecasts indicate steady recovery and growth over the following years. In the first quarter alone, a record 45% of residential solar installations were paired with battery energy storage systems, highlighting the growing importance of home-based energy resilience and backup power solutions.

Overall, the report underscores solar and energy storage as central pillars of the evolving U.S. electricity system, driven by rising demand, technological shifts, and an increasing focus on energy security and grid flexibility.