Hornet Photo voltaic, a 600-MW photo voltaic venture in Texas by Vesper Power that started industrial operation in April 2025.
The U.S. photo voltaic business put in 10.8 GW of latest electrical energy producing capability in Q1 2025, in keeping with the U.S. Solar Market Insight Q2 2025 report launched at this time by the Photo voltaic Power Industries Affiliation (SEIA) and Wooden Mackenzie. Photo voltaic and storage accounted for 82% of all new producing capability added to the grid within the first quarter.
The business additionally added 8.6 GW of latest photo voltaic module manufacturing capability in Q1 2025, marking the third-largest quarter for brand new manufacturing capability on file. The manufacturing surge comes from eight new or expanded factories in Texas, Ohio and Arizona. Along with rising module capability, U.S. photo voltaic cell manufacturing capability doubled in Q1 to 2 GW with the opening of a brand new manufacturing unit in South Carolina.
Whereas photo voltaic manufacturing and deployment proceed to guide American power independence and development, new tariffs and potential modifications to federal tax credit pose important enterprise uncertainty for the business and threaten its long-term development.
“Photo voltaic and storage proceed to dominate America’s power financial system, including extra new capability to the grid than any know-how utilizing more and more American-made gear,” stated SEIA president and CEO Abigail Ross Hopper. “However our success is in danger. If Congress fails to repair the laws handed by the Home – which might render the power tax incentives unusable – lawmakers will set off a harmful power scarcity that can elevate our electrical payments and cease America’s manufacturing growth in its tracks. The Senate nonetheless has time to get this proper and safe President Trump’s imaginative and prescient for American power dominance.”
Economic system-wide tariff uncertainty, new anti-dumping and countervailing duties (AD/CVD) on cells and modules from Southeast Asia, and potential shifts in federal power incentives might considerably hinder U.S. photo voltaic deployment and manufacturing, risking power shortages, job losses and manufacturing unit closures.
“The ten.8 GW of photo voltaic capability put in in Q1 2025 represents a good portion of latest U.S. electrical energy technology, highlighting photo voltaic’s rising dominance within the power combine,” stated Zoë Gaston, Principal Analyst at Wooden Mackenzie. “Nevertheless, our evaluation means that the U.S. photo voltaic market has but to achieve its full potential. The proposed modifications to federal tax incentives, together with ongoing tariff considerations, might considerably influence this development trajectory and probably result in power provide challenges. It’s vital to think about the crucial function of photo voltaic in America’s power panorama” added Gaston.
SEIA and Wooden Mackenzie’s forecast for the business, which accounts for tariffs levied in Q2 however not potential roll backs of the federal tax credit, initiatives declining deployment nationwide, which might end in misplaced funding in native communities, power shortfalls, and elevated power payments for Individuals. Whereas the neighborhood photo voltaic forecast remained flat, all different segments noticed their five-year outlook decline in comparison with final quarter, together with a 14% discount in forecasted residential photo voltaic deployment, and a 6% discount in forecasted utility-scale deployment. Rollbacks of the power tax credit, on prime of lately levied tariffs, would unequivocally worsen the harm to the photo voltaic business.
A separate latest evaluation carried out by SEIA of the impacts of the Home-passed reconciliation laws initiatives a devastating power scarcity for the U.S. financial system ought to the invoice turn into legislation. If lawmakers fail to alter course, 330,000 present and future Individuals jobs might be misplaced, 331 factories might shut or by no means come on-line, and $286 billion in native investments might disappear. The invoice might additionally set off huge power inflation, elevating shoppers’ electrical energy prices by $51 billion nationwide.
If Congress cuts power tax incentives, SEIA’s evaluation initiatives that power manufacturing will fall 173 TWh and america won’t be able to satisfy demand or compete with China within the world race to energy AI.
Based on the Photo voltaic Market Perception report, Texas continued to dominate, including extra photo voltaic capability than any state in Q1 2025, with the state of Florida surging forward of California for second place. Of the highest ten states with probably the most photo voltaic installations within the first quarter, eight have been received by President Donald Trump within the 2024 election: Texas, Florida, Ohio, Indiana, Arizona, Wisconsin, Idaho and Pennsylvania.
Learn the report here.
Information merchandise from SEIA
