The United States added 7.8 GW of new solar capacity during the first quarter of 2026, surpassing six million cumulative solar installations nationwide, while solar and energy storage accounted for 91% of all new power generation capacity connected to the grid, according to the latest US Solar Market Insight 2026 Q2 Report released by the Solar Energy Industries Association (SEIA) and Wood Mackenzie.

The report highlights the continued role of solar power in meeting rising electricity demand across the country. Utilities, businesses and homeowners increasingly turned to solar and storage solutions amid ongoing supply disruptions affecting natural gas and gas turbine markets.

Utility-scale solar contracts rise 15%

Demand for large-scale solar projects continued to grow during the quarter. According to the report, utility-scale solar contracts increased by 15% year over year, driven largely by technology companies seeking additional electricity supply to support the rapid expansion of artificial intelligence infrastructure and data centers.

As a result, SEIA and Wood Mackenzie revised their industry outlook upward, citing strong growth in electricity demand and increasing procurement of solar capacity in utility resource plans.

Republican-led states lead deployment

States won by President Donald Trump accounted for 74% of all solar capacity installed during the first quarter.

Texas maintained its position as the nation’s largest solar market, while Ohio climbed into the top three states for new solar deployment. Significant growth was also recorded in Michigan, Oregon, and Mississippi.

Permitting delays continue to affect growth

Despite strong demand, SEIA warned that permitting challenges remain a major obstacle for the sector.

According to the association, 457 solar and storage projects currently have permits pending, making them vulnerable to delays or cancellations. Wood Mackenzie noted that permitting bottlenecks are expected to limit market growth despite increasing demand for new electricity generation.

The consultancy forecasts that annual solar additions in the United States will remain broadly flat over the next five years unless permitting processes improve.

Residential solar market faces short-term decline

The report forecasts a 21% decline in residential solar installations in 2026, although the segment is expected to return to sustained growth between 2027 and 2031.

At the same time, battery adoption continues to accelerate. During the first quarter, 45% of all residential solar installations were paired with battery energy storage systems, marking a record level for the US market.