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CommoditiesMedium•10 March 2026•

1 min read

US Solar Installations Drop 14% in 2025 Amid Policy Shifts and Tariffs

Gold bars and coins on a table with multiple computer screens displaying financial charts and a large red downward arrow.

Key Facts

1US solar installations fell by 14% in 2025, totaling 43.2 gigawatts (GWdc).

2Trump administration policies, including tariffs and restricted tax credit timelines, contributed to the slowdown.

US solar installations experienced a significant 14% decline in 2025, totaling 43.2 gigawatts (GWdc) according to data from SEIA and Wood Mackenzie. This contraction marks a shift in the industry's growth trajectory, primarily driven by policy changes under the Trump administration. Factors such as new tariffs and restricted timelines for tax credits have created regulatory uncertainty, dampening investor confidence across the sector. Despite the slowdown, solar energy maintained its position as the top source of new U.S. power capacity for the fifth consecutive year. Analysts suggest that permitting challenges and trade barriers remain the primary headwinds for utility-scale developers. The downturn has directly impacted clean energy ETFs and major solar stocks including FSLR and ENPH.