In a new analysis by GlobalData, a Global consultancy company, they predict that America can anticipate tremendous growth in total installed solar energy capacity by reaching 737.8 GW by the end of 2035, moving from a fast-growing industry to being one of the main pillars of the electric grid in America while still dealing with short term policy and price issues.
Although reaching this level of solar installed capacity will be challenging, after a slow recovery through 2025, there will be a strong resurgence of growth in the first half of the 2030s. 2024 is projected to be a record-breaking year for the industry with approximately 49 GW of solar capacity being added; however, 2025 will see this amount drop slightly to 47.9 GW. A slow but similar pattern will happen for the foreseeable future, with forecasted annual installations running in the low-to-mid-40's GW through the end of this decade. By 2030, the total solar capacity installed will be approximately 449.6 GW.
The decade that follows will see a true acceleration in the addition of solar capacity. GlobalData forecasts a steady increase in annual installations from 2030 onwards, with annual additions reaching greater than 50 GW by the year 2034, ultimately culminating in anticipated additions of 52 GW in the year 2035 alone, creating a sustainable long-term high-volume solar market. In addition to the significant increase in solar energy capacity being added to the U.S., the increase in solar capacity will support the overall energy transition expected to occur in the United States by building a total of 1.06 terawatts (TW) of renewable energy capacity in the U.S., more than double the total of 414.5 GW in operation at the end of 2024.
Dual Engines of Growth: Policy Mandates and Market Demand
This continued growth in solar capacity is being driven by an effective combination of strong top-down policy initiatives and strong bottom-up economic drivers. There are state-level ambitious renewable portfolio standards and procurement mandates which create guaranteed long-term markets for clean energy through governmental policy initiatives. Additionally, there are distributed generation policies that provide a means for homeowners, businesses and communities to invest in solar energy systems through net metering and net billing policies.
Parallel to policy, active procurement by large utilities, particularly in key markets like Texas, California, and the Midwest, is securing the pipeline for gigawatt-scale solar farms. According to GlobalData's Mohammed Ziauddin, a Power Analyst, "Solar and wind are continuing to grow on an increasingly large scale as a result of state policies and a high demand from the Private Sector," and "the expansion of renewables is being complemented by the continuing investment into Natural Gas and Nuclear Capacity to help satisfy the requirements for Grid reliability." Together, these two trends represent the future direction of the u.s. electricity system as it will evolve into a more diverse and resilient market over time.
Navigating the Hurdles: Tariffs, Costs, and Investment
The report emphasises that the uncertainty created by new tariffs and trade restrictions, as well as additional importation costs, has put unprecedented strain on many projects regarding the supply chain. Since the introduction of these measures in 2025, the increased costs of imported material have led to an extended timeline, higher capital investment, greater numbers of delays and cancellations than were previously projected, and lower project development.
However, while these variables are mentioned as obstacles, they do not appear to be viewed as insurmountable challenges. Both the ongoing viability of solar's competitive pricing and supportive policies across various regions should help to mitigate the effects of these events. The level of financial investment required indicates the level of confidence in the sector going forward. GlobalData estimates that the investment made by the U.S. in renewable energy will exceed $442.2 billion between 2025 and 2030, reflecting a very positive indication of the future of the industry in response to the issues discussed.
"Despite policy shifts and tariff-related cost pressures, renewable energy remains the primary driver of capacity growth in the U.S. power sector through to 2035," Ziauddin stated, emphasizing the sector's fundamental strength.
The Bottom Line
The Solar Power Market will continue to grow and expand, even with all the difficulties it has gone through. GlobalData expects that there will be a reduction in the annual number of solar installations by the end of the next decade due to new economics and supply chain modifications resulting from recent events such as COVID-19.
However, as shown in the forecast for solar power growth during the 2030s, solar power is expected to be a large part of America's energy future as well. As such, by 2035, the forecasted capacity for all solar technology is approximately 737.8 GW, which is more than four times the capacity currently in operation today. This tremendous increase in capacity over the course of 10 years will significantly change how electricity is generated and consumed within the U.S. as well as how society will operate.
SOURCE: GlobalData, United States of America Power Market Size, Trends, Regulations, Competitive Landscape and Forecast, 2025-2035.
Source: Market analysis derived from GlobalData, as initially reported by pv magazine USA.
Media Contact: For further information or to arrange an interview with a GlobalData analyst, please contact their press office.
