Report: US solar installations will drop by 2025 as a result of Trump's policies.

A study released on Tuesday showed that the U.S. market for solar energy added fewer installations in 2025 than the previous year. This is due to the fact that President Donald 'Trump' scrapped tax breaks and subsidies for renewable energy developers.

According to a report by Wood Mackenzie and the Solar Energy Industries Association, 43 gigawatts of new solar capacity was installed in 2018. This compares to 50 GW in 2020.

Report: The One Big Beautiful Bill Act of the Obama administration has caused a disruption in the solar industry, with utility-scale installations falling 16%, and community solar dropping 25% by 2025.

Under the current administration's energy agenda, which is centered on coal, oil, and gas, and marks a shift from Joe Biden’s green policies, the?solar sector is facing tariff pressures and approval freezes for major projects.

Solar and energy storage still accounted for 79% of new capacity additions in the first year of Trump's administration. More than two thirds of installations occurred in states that he won, according to the report.

Texas, Indiana, Florida Arizona, Utah, Ohio and Arkansas were all in the top five with new solar power capacity.

The report stated that solar power is still economically competitive. This is especially true as the demand for electricity from data centers devoted to AI reaches record highs.

Darren Van't Ho, interim president and CEO of the SEIA, said that Washington must provide policy certainty to allow the market to function and keep up with increasing energy demand.

Without this certainty, less solar will be built and Americans will have to pay more for energy.

The report estimates that the U.S. will?add 490? GW of solar capacity by 2036. This would bring the total installed capacity to almost 770? GW.

Michelle Davis, Wood Mackenzie's head of solar, stated in the report that "it is clear that solar power will continue to be the predominant source of new electricity capacity in the U.S. even though gas generation continues its growth." Reporting by Pranav mathur in Bengaluru, editing by Shilpimajumdar

(source: Reuters)