Investment in commercial and industrial solar container is on the rise

How does the US solar industry affect project economics?

Notably, despite the US solar industry’s reliance on domestically produced steel, market forces triggered an immediate increase in the domestic steel index. This unexpected rise has increased the production costs of tracker manufacturers, potentially affecting project economics. Additionally, US module manufacturers face increased frame costs.

How will tariffs affect solar market growth?

Policy uncertainty and rising costs due to tariffs will impact market growth across all solar segments. Proposed tax credit changes and stricter regulations on foreign entities could also result in a more significant market contraction.

How much solar capacity did the US solar industry install in Q1 2025?

The US solar industry installed 10.8 gigawatts-direct current (GWdc) of capacity in the first quarter of 2025. Despite both a quarterly and annual decline in capacity, Q1 2025 was the industry’s fourth-best quarter. The utility-scale segment followed a similar trend, with 9 GWdc of capacity, which is lower than both Q1 2024 and Q4 2024.

How much will the US solar industry contract in 2025?

The US solar industry is projected to contract by 2% annually between 2025 and 2030 in our Base case but still add nearly 43 GWdc on average each year. In the near term, solar installations will decline at an average rate of 7% from 2025 to 2027.

How will the community solar market change in 2025?

The community solar market will experience a more significant contraction, with capacity declining by 22% year-over-year in 2025, following a record year in 2024. Lastly, utility-scale installations will drop by 2% in 2025 after two solid years of growth.

How much solar capacity did the residential segment install in Q1 2025?

Utility-scale projects dominated installations in both states. In Q1 2025, the residential segment installed 1,106 MWdc of solar capacity, declining 13% year-over-year and 4% quarter-over-quarter. High interest rates and economic uncertainty continued to suppress demand.