The U.S. solar market experienced a significant increase in capacity installations in the third quarter, with developers rushing to qualify for the last investment tax credits being phased out by the Trump Administration. The industry added 11.7 GWdc of solar power capacity, a 20% increase from the previous year and a 49% surge from the second quarter.

The surge in solar installations in the third quarter largely reflects utility-scale projects that were mostly completed in the second quarter, following the passage of the One Big Beautiful Bill Act (OBBBA). Under the OBBBA, wind and solar projects must begin construction by July 4, 2026, to qualify for Investment Tax Credit (ITC) or Production Tax Credit (PTC).

Despite the record utility-scale solar installations, the federal permitting freeze poses uncertainty and risk for the industry. Wood Mackenzie predicts a rush of activity to meet legal requirements for starting construction, as projects must be completed by December 31, 2027, to remain eligible for tax credits.

Solar and storage accounted for 85% of all new power added to the grid in the first nine months of the Trump Administration, with 73% of solar capacity installed this year in states won by President Trump. However, SEIA president and CEO Abigail Ross Hopper warns that without policy changes, the future of clean, affordable solar and storage could be hampered by uncertainty and rising energy costs.

Read more at Yahoo Finance: U.S. Solar Installations Soar as Developers Rush to Secure Tax Credits