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New study makes stunning discovery about the American energy sector — here's what drove nearly 60% of all new electricity generation

Despite a record-breaking quarter, the industry continues to face notable challenges.

The U.S. solar industry just had one of its biggest quarters ever, with solar power accounting for more than half of all new power added to the nation's electric grid.

Photo Credit: iStock

The U.S. solar industry recently had one of its biggest quarters ever, with solar power accounting for more than half of all new power added to the nation's electric grid.

A new analysis found the U.S. installed 11.7 gigawatts of new solar capacity in the third quarter of 2025 — up 49% from the previous quarter and marking one of the largest quarterly totals ever. With this recent surge, solar now makes up 58% of all new electricity-generating capacity added to the U.S. grid.

Per the analysis by the Solar Energy Industries Association and data analytics company Wood Mackenzie, much of this third-quarter growth came from utility-scale projects driven by developers racing to meet federal tax credit deadlines under recent legislation. Residential solar, however, saw a small decline due to supply constraints.

Despite a record-breaking quarter, the industry continues to face notable challenges — including supply shortages and permitting delays — causing more than 100 gigawatts of solar and storage capacity stuck in limbo. Per Reuters, much of this delay can be traced back to the federal government.


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"Any such project in the country is subject to the red tape that the Interior Department has erected for solar," Sean Gallagher, senior vice president of policy at SEIA, told Reuters. "If they don't have their final permits yet, the Interior Department red tape could hold them up."

Still, going solar is one of the best ways homeowners can save money on home energy. By generating your own clean electricity, you can significantly reduce — or even eliminate — monthly utility bills while protecting yourself from rising energy costs.

When exploring going solar, it's smart to consult the professionals to help you understand your options. Homeowners can start by checking out EnergySage's free resources to get fast solar installation estimates and compare multiple quotes from vetted installers. Using EnergySage takes the guesswork and sales pressure out of going solar, and helps ensure you're getting competitive offers that maximize long-term savings.

Along with quotes and estimates, EnergySage offers a powerful mapping tool that shows the average state-by-state cost of a home solar panel system, including detailed information on available solar incentives. By using this interactive map, homeowners can better understand local pricing trends and claim all rebates and incentives available.

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Want to go solar but not sure who to trust? EnergySage has your back with free and transparent quotes from fully vetted providers that can help you save as much as $10k on installation.

To get started, just answer a few questions about your home — no phone number required. Within a day or two, EnergySage will email you the best local options for your needs, and their expert advisers can help you compare quotes and pick a winner.

With EnergySage's help, the average person can save up to $10,000 on solar purchases and installations. Those savings come on top of the long-term reductions in energy bills, making solar one of the smartest financial upgrades for many homes.

To make your new home solar setup even more resilient, consider adding battery storage to your array. It's a great way to protect your home during outages, save money on energy, and move closer to going off-grid. Home battery storage allows you to bank excess solar power for nighttime use or emergencies, increasing both resilience and independence. 

EnergySage also offers free tools for exploring battery installation options, including curating competitive installation estimates.

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