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					</table><p>The U.S. solar industry added a capacity of 11.7 GW in the third quarter (Q3) of 2025, a 20% year-over-year (YoY) and a 49% quarter-over-quarter (QoQ) increase, according to US Solar Market Insight Q4, a joint report by <a href="https://www.woodmac.com/" target="_blank" rel="noopener">Wood Mackenzie</a> and <a href="https://seia.org/" target="_blank" rel="noopener">Solar Energy Industries Association</a>.</p>
<p>The report attributes the rise in solar installations to nearly completed projects in Q2 that were halted by the Reconciliation Act and completed in Q3. However, it highlighted that industry constraints and supply chain bottlenecks moderated the installation rush.</p>
<p>The quarter also saw solar module shortages and delivery delays affecting the residential sector. The commercial and community solar projects were constrained by labor availability.</p>
<p>The report noted that supply and labor constraints together limited utility solar buildout despite a near-term rush to complete projects.</p>
<p>Solar accounted for 58% of all new electricity-generating capacity added in the U.S. in Q3 2025, with 30 GW added. Solar-plus-storage solutions accounted for 85% of new power-generating capacity added during the period.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/woomac1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-87633 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/woomac1.png" alt="" width="747" height="408" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/woomac1.png 747w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/woomac1-300x164.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/woomac1-650x355.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/woomac1-624x341.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/woomac1-600x328.png 600w" sizes="auto, (max-width: 747px) 100vw, 747px" /></a></p>
<p>The U.S. added 4.7 GW of solar module manufacturing capacity in Q3, bringing the total to 60.1 GW. A new wafer manufacturing facility went online at Corning, Michigan.</p>
<p><strong>Segment-Wise Installations</strong></p>
<p>The distributed solar segment saw a mixed quarter, while the utility-scale solar segment saw substantial build-out.</p>
<p>The residential segment added 1,088 MW of solar capacity, a 4% YoY and QoQ drop. Despite a rush to complete projects before this year to qualify for tax credits, equipment constraints held back growth in installations.</p>
<p>The commercial solar segment grew 9% YoY, with 554 MW of added capacity, but declined 12% YoY QoQ. The report highlighted that there were healthy installations in California as the pipeline of Net Energy Metering 2.0 installations continued to come online in the quarter, but the policy-driven surge began to wane.</p>
<p>Under the community solar segment, the U.S. installed 267 MW, a 21% YoY drop and a 12% QoQ jump. The growth in the community solar segment was due to the first projects in New Mexico and Delaware coming online.</p>
<p>The utility-scale solar installations totaled 9.8 GW in Q3, a 26% YoY rise and a 68% increase from the previous quarter. Overall, installation activity for utility-scale projects was concentrated in Texas, California, and Utah. Even though installations grew strongly, contracting activity continued to decline as developers maintained a cautious “wait-and-see” approach.</p>
<p>In Q3 2025, 4.1 GW DC was contracted, representing a 27% YoY decrease.</p>
<p><strong>System Prices</strong></p>
<p>Module prices declined by 12% YoY across all segments, driven by the expansion of manufacturing capacity and higher module capacity power.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/woodmac2.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-87635 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/woodmac2.png" alt="" width="727" height="482" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/woodmac2.png 727w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/woodmac2-300x199.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/woodmac2-650x431.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/woodmac2-624x414.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/woodmac2-600x398.png 600w" sizes="auto, (max-width: 727px) 100vw, 727px" /></a></p>
<p>Residential system prices fell 3% YoY to $3.35/W. However, the increase in the balance of cost categories offset the gains from the decrease in the module and inverter process.</p>
<p>System pricing for the commercial sector rose by 9% to $1.71/W. The jump in system pricing for the commercial sector was due to a 50% YoY surge in the cost of balance-of-system electrical systems and racking.</p>
<p>Utility-scale fixed-tilt system costs increased by 9% to $1.16/W DC, while single-axis tracking systems increased by 10% to $1.32/W DC YoY. This price increase is driven by the balance of electrical system costs, which rose 8% YoY due to new tariffs on commodities.</p>
<p>Labor costs also increased by 15% annually, and engineering, procurement, and construction overhead costs and margins jumped by nearly 40%. The surge in labor costs and EPC overhead costs reflected heightened project risk premiums amid policy and tariff uncertainty.</p>
<p><strong>Outlook</strong></p>
<p>The report forecast 246 GW of solar installations between 2025 and 2030. It anticipates 41 GW of utility-scale solar projects to be constructed in 2025 and 197 GW of utility-scale solar to be built between 2025 and 2030.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/woodmac3.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-87636 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/woodmac3.png" alt="" width="717" height="761" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/woodmac3.png 717w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/woodmac3-283x300.png 283w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/woodmac3-650x690.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/woodmac3-624x662.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/12/woodmac3-600x637.png 600w" sizes="auto, (max-width: 717px) 100vw, 717px" /></a></p>
<p>The U.S. solar industry <a href="https://mercomindia.com/us-solar-installations-fall-28-in-q2-2025-amid-challenges-from-policy-shifts" target="_blank" rel="noopener">installed</a> 7.5 GW of capacity in Q2 of 2025, a 24% YoY and a 28% QoQ decline. It <a href="https://mercomindia.com/us-solar-sees-7-decline-in-q1-2025-with-10-8-gw-installed">installed</a> 10.8 GW of capacity in Q1.</p>


Surge in Utility-Scale Installations Drives US Solar Deployment to 11.7 GW in Q3 2025


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					</table><p>Overall solar installations across all market segments in the United States are likely to triple in size, increasing from 129 GW to 336 GW in the next five years, a report by the Solar Energy Industries Association (<u><a href="https://www.seia.org/" target="_blank" rel="noopener">SEIA</a></u>) and <u><a href="https://www.woodmac.com/" target="_blank" rel="noopener">Wood Mackenzie</a></u> has said.</p>
<p>The Inflation Reduction Act (IRA) will help the United States solar market grow 40% or 62 GW of additional capacity over baseline projections through 2027, according to the report.</p>
<p>According to the U.S. Solar Market Insight Q3 2022 report jointly released by SEIA and Wood Mackenzie, despite supply challenges slowing the market, solar accounted for 39% of all new electric generating capacity additions during the first half of 2022.</p>
<p>The IRA would <a href="https://mercomindia.com/inflation-reduction-act-faster-transition-clean-energy-u-s/" target="_blank" rel="noopener">deliver</a> billions of dollars in taxes and other incentives to U.S. solar manufacturers. It will equip them with government support to compete with Chinese and Canadian solar energy products.</p>
<p>The country’s solar market alone represents around 4.5% of America’s electricity mix. The report highlights that the developments in the utility-scale sector will lead to the solar sector’s growth until 2027 with 162 GW of new capacity additions.</p>
<p>In the second quarter (Q2) of 2022, the U.S. installed 4.6 GW of solar capacity, down year-over-year by 12% and up 12% from Q1 2022. Installations would have been higher if not for supply chain constraints and the uncertainty of the anticircumvention <a href="https://mercomindia.com/us-probe-solar-module-imports-southeast-asia/" target="_blank" rel="noopener">probe</a>.</p>
<p>The report highlights that IRA will pave the way for more provisions that would benefit the U.S. <a href="https://mercomindia.com/us-installed-3-9-gw-solar-capacity-q1-2022/" target="_blank" rel="noopener">solar sector</a>. Implementing the Act will help establish standalone storage ITC, providing more options to finance and <a href="https://mercomindia.com/us-added-955-mw-energy-storage-installations/" target="_blank" rel="noopener">deploy</a> storage and helping support a grid with more variable generation.</p>
<p>IRA will also help bring in tax credits and incentives for several zero or low-carbon technologies that will accelerate electrification and help the country meet its carbon footprint. Electric vehicles would be able to avail of expanded tax credits, ultimately boosting the electrification of the transport sector.</p>
<p>SEIA President and CEO Abigail Ross Hopper observed, “This report provides an early look at how the IRA is going to transform America’s energy economy, and the forecasts show a wave of clean energy and manufacturing investments that will uplift communities nationwide. With this incredible opportunity comes a responsibility to clearly address concerns over forced labor and ensure that we have ethical supply chains throughout the world.”</p>
<p>Despite a rosy outlook for the next five years, solar installation forecasts for 2022 dropped to 15.7 GW, the market’s lowest total since 2019, due primarily to a Commerce Department tariff investigation.</p>
<p>With the enforcement of UFLPA, several Tier 1 modules remain detained. The U.S. solar industry had expected that UFLPA would require certain documentation under the Withhold Release Order (WRO).</p>
<p>However, unlike in WRO, Customs and Border Protection has been seeking sourcing documentation for the quartzite that is processed into polysilicon for solar modules, which needs documenting the sources of metallurgical grade silicon. Utility-scale projects that need large shipments of modules are the most impacted as developers are pessimistic about procuring modules for the remaining year.</p>
<p>Meanwhile, the industry awaits clarity on the exact requirements once CBP releases the first shipments, which, per the report, can happen soon as a few manufacturers have started filing admissibility packages with CBP.</p>
<p>In June, the White House <a href="https://mercomindia.com/president-biden-waives-duties-solar-module-imports/" target="_blank" rel="noopener">waived</a> new tariffs on solar imports from Southeast Asian countries for two years, providing some relief to the market. However, the report finds that the Uyghur Forced Labor Prevention Act (UFLPA) that took effect in June 2021 could limit solar deployments through 2023.</p>
<p>Principal analyst at Wood Mackenzie and lead author of the report Michelle Davis asserted, “The Inflation Reduction Act has given the solar industry the most long-term certainty it has ever had. Ten years of investment tax credits stand in stark contrast to the one-, two-, or five-year extensions that the industry has experienced in the last decade. It’s not an overstatement to say that the IRA will lead to a new era for the U.S. solar industry.”</p>
<p>The U.S. residential solar segment set a record for the fifth consecutive quarter, with around 180,000 American households installing solar in Q2. According to the report, the IRA is set to drive an additional 7.3 GW of residential solar capacity until 2027. The new standalone storage tax credit across all market segments is expected to improve grid reliability.</p>


Inflation Reduction Act to Help US Solar Installations to Triple by 2027: Report

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