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US utility-scale solar capacity set to surge in 2025

The US developers plan to add 21GW of solar power in the latter half of the year.

Tiash saha August 21 2025

According to the US Energy Information Administration’s latest survey of electric generating capacity changes, developers in the US have added 12GW of new utility-scale solar electric generating capacity in the first half of 2025.

They also plan to add 21GW in the latter half of the year. If this comes to fruition, solar power will represent more than half of the 64GW of total capacity that developers aim to introduce to the grid this year.

In case the developers achieve the target of 64GW of capacity additions this year, it will surpass the previous record set in 2002, when 58GW was added, predominantly from natural gas.

Over the years, the diversification of energy sources has seen wind, solar, and battery storage becoming increasingly significant contributors to new capacity.

The anticipated growth in solar photovoltaic and battery storage capacities is particularly pronounced in Texas.

Texas has contributed 3.2GW, or 27%, of the solar capacity added so far and is expected to add a further 9.7GW in the second half of 2025.

This follows last year's milestone, when Texas overtook California as the state with the largest utility-scale solar capacity.

Battery storage also plays a major role, accounting for 26% (5.9GW) of the capacity additions in the first half of the year, with significant installations in Arizona and California.

Texas is also expected to add 7GW of battery storage capacity throughout 2025.

In contrast, there has been minimal retirement of generating capacity in the first half of 2025. Of the 8.7GW planned for retirement throughout the year, only 2GW have so far been decommissioned.

Moreover, more than 3.6GW of previously reported retirement plans have been postponed or cancelled, including coal and oil-fired units in Maryland and a natural gas plant in Texas.

If the current retirement intentions hold, coal-fired power plants will account for 71% of this year's retired capacity, with natural gas representing 19%.

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