Solar Delivered 61% of America’s Power Demand Growth Last Year, but Policy Risk Is Catching Up

America’s solar sector is blazing through despite federal policy reversals threatening to dim its trajectory. Solar captured 61% of all US power demand growth last year, according to Ember. The renewables surge comes as federal policy shifts threaten to cloud long-term prospects, but AI’s insatiable appetite for electrons could keep developers plugged in.

• Solar is now America’s fastest-growing power source, projected to supply 8% of US electricity this year and rise to 10% by 2027 (EIA).
• Despite solar generation rising more than a quarter last year, BloombergNEF has already cut its 2025–2035 utility-scale solar outlook by 25%.

Embers of optimism: Data centers are quickly becoming solar’s saving grace even as regulatory rollbacks pile up. Wood Mackenzie’s Kaitlin Fung says demand from data centers is offsetting political headwinds for utility-scale projects, despite the 2025 GOP budget law speeding up tax credit phaseouts and tightening eligibility deadlines. Still, WoodMac expects US power demand to climb nearly 3% annually through 2035, even as grid limits and permitting delays could weigh on growth through 2029.