Photo: Arevon
Solar and storage made up a huge 91% of all new power capacity added to the US grid in Q1 2026, according to a new report from the Solar Energy Industries Association (SEIA) and Wood Mackenzie.
The US added 7.8 gigawatts of new solar capacity in Q1 alone, pushing the country past 6 million total solar installations. Solar stayed the top source of new electricity generation, even as the clean energy industry faces growing political and regulatory pressure in Washington.
The report says utilities, businesses, and homeowners are continuing to turn to solar and battery storage as electricity demand climbs and gas supply issues create uncertainty. Solar contracts for large utility-scale projects jumped 15% year over year, driven in part by tech companies racing to secure enough electricity for AI data centers.
SEIA and Wood Mackenzie also raised their industry forecast as US electricity demand keeps rising. Solar and storage can be deployed relatively quickly and aren’t exposed to fuel price swings, making them increasingly attractive as utilities look for fast ways to add power to the grid.
Texas remained the country’s fastest-growing solar market in the quarter, while Ohio climbed into the top three states for new solar deployment. Michigan, Oregon, and Mississippi also posted strong growth.
Red states accounted for 74% of all new solar capacity installed in Q1, with Texas, Florida, Ohio, Indiana, Michigan, Arizona, and Mississippi all ranking in the top 10.
“In a world of fluctuating fuel prices, energy buyers have made it clear that they want the security, low cost, and speed of solar and storage, which commanded a massive 91% of all new capacity built in Q1,” said Darren Van’t Hof, interim president and CEO of SEIA.
Van’t Hof warned that permitting delays and political attacks on clean energy could push electricity prices higher at a time when the US needs more power than ever. SEIA says 457 solar and storage projects are currently stuck waiting on permits and could face delays or cancellations.
Wood Mackenzie’s Michelle Davis said the industry expects solar growth to flatten over the next five years, despite rising electricity demand. “We’ve seen a notable increase in solar procurements in utility resource planning, but current permitting bottlenecks continue to serve as near-term headwinds.”
The residential solar market is expected to fall 21% in 2026, according to the report, although analysts still expect steady growth between 2027 and 2031.
One notable trend: A record 45% of homeowners paired solar panels with batteries in Q1 as more people look for backup power and lower electricity bills.
Read more: Most big US solar projects don’t spark backlash after all, study finds
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