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Solar, Storage Account for 91% of New US Power Capacity in Q1 2026, Wood Mackenzie Says

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The US added 7.8 gigawatts of new solar capacity in Q1 2026, surpassing 6 million cumulative installations as solar remained the largest source of new electricity generation added to the grid, according to a Wood Mackenzie report released on Thursday.

The US Solar Market Insight 2026 Q2 Report from the Solar Energy Industries Association and Wood Mackenzie found that solar and energy storage accounted for 91% of all new generating capacity installed during the quarter, despite policy and regulatory challenges facing the clean energy sector.

The report said utility-scale solar contracts increased 15% from a year earlier, driven largely by technology companies seeking power supplies to meet rising electricity demand from artificial intelligence applications.

SEIA and Wood Mackenzie said solar and battery storage projects can be deployed quickly and are insulated from fuel price volatility, making them increasingly attractive amid global disruptions to natural gas and gas turbine supply chains.

States carried by US President Donald Trump in the 2024 election accounted for 74% of solar capacity installed in the quarter. Texas remained the nation's largest solar market, while Ohio rose into the top three states for new deployments. Michigan, Oregon and Mississippi also posted strong growth.

However, SEIA warned that permitting delays could threaten future expansion. The trade group said 457 solar and storage projects are awaiting permits and could face delays or cancellations.

"We are forecasting that US solar additions will be flat over the next five years despite the need for more power supply," said Michelle Davis, head of solar at Wood Mackenzie. She cited permitting bottlenecks as a key near-term challenge despite growing utility demand for solar projects.

The residential solar market is expected to contract 21% in 2026, according to the report, before returning to steady growth between 2027 and 2031.

A record 45% of residential solar installations in the first quarter were paired with battery storage systems.

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