Solar Energy Growth in the USA: 2026 State of the Market
The US added more solar in 2025 than gas, coal, and nuclear combined. Here's what actually happened, what's coming in 2026, and the read-through for rental property owners.
The headline numbers
The US installed roughly 50 GW of new solar capacity in 2025 — a record year and more than any other generation source. Cumulative installed solar crossed 260 GW, enough to power more than 45 million homes.
Behind-the-meter (rooftop and small commercial) accounted for ~30% of that — the fastest-growing slice because it doesn't wait on transmission queues.
Cost curve
Utility-scale solar LCOE is now $29–$38/MWh in most of the Sun Belt — cheaper than the fuel cost of existing gas plants. Residential and small-commercial installed costs dropped ~14% year over year, driven by module deflation and installer consolidation.
Policy tailwinds still in force
- The Investment Tax Credit (ITC) remains at 30% through 2032 for systems meeting labor rules.
- Direct-pay and transferability provisions let non-taxable owners (HOAs, non-profits, some LLC structures) monetize the credit.
- FERC Order 2023 is finally clearing interconnection backlogs in PJM and MISO.
What it means for landlords
Three read-throughs:
- Utility rates keep rising. US retail electricity was up 5.7% in 2025. Every year that gap widens, solar tenant billing gets more attractive vs. the grid alternative.
- Financing is available. With module costs low and ITC intact, PPA providers can offer zero-capex terms on properties as small as 12 units.
- Competition for good rooftops is starting. In dense multifamily markets (LA, Boston, Miami), installers are aggregating properties. Owners who move first lock in the best economics.
The 2026 outlook
Wood Mackenzie projects ~55 GW of new US solar in 2026. The bottleneck is no longer panels or capital — it's interconnection and skilled labor. For behind-the-meter projects on existing buildings, that bottleneck barely applies. If your roof is structurally sound and your local utility supports net metering or VNEM, you can be producing revenue in 60–90 days.
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