Utility-scale solar power is the fastest-growing source of electricity in the U.S. Well over half of all new U.S. electric capacity added in 2025 was utility-scale solar. As of late 2025, total utility-scale solar capacity surpassed 153 GW, enough to power 45 million homes.
Despite an administration that is vehemently antagonistic toward renewable energy, utility solar continues to rapidly grow. This is because it is one of the most cost-effective electricity sources. Its levelized cost is often below 5 cents per kWh, making it cheaper than new natural gas plants and roughly half the cost of residential solar. Operation and maintenance costs for utility-scale solar are low, contributing to long-term affordability. When coupled with battery storage, which is also becoming cheaper and more plentiful, the inherent intermittency of solar power is mitigated.
Despite the turbulent conditions for the energy industry in the U.S., fewer solar projects were delayed in 2025 than in the previous year. Over 30 GW of new capacity was added last year, and a record 43 GW is expected this year.
The long-term outlook for utility solar remains very positive, taking into account the existence of tax credit safe-harbor deadlines and solar’s increasing competitiveness against new natural gas plants. Assuming that the country intends to meet climate goals – which is currently not likely – solar could meet 40% of US electricity needs by 2035.
