U.S. solar power demand is still rising fast, and the market’s latest numbers point to more growth ahead. On May 28, 2026, Zacks Equity Research highlighted First Solar, Enphase Energy and Canadian Solar as the industry moves through a year of strong demand and sharper policy headwinds.
The Solar Energy Industries Association now projects cumulative U.S. solar capacity will nearly triple to 769 GWdc by 2036 from 279 GWdc installed at year-end 2025, with average annual additions topping 44 GWdc. The forecast, updated in March 2026, marked an increase from the previous quarter and underscores how solar remains the nation’s dominant source of new generating capacity.
The growth story is being driven by forces that have become more visible this year: rising electricity consumption, AI-powered data center expansion and corporate clean-energy commitments. The U.S. Energy Information Administration said solar will account for 8% of U.S. electricity generation in 2026 and 9% in 2027, while utilities and businesses across the country are speeding up adoption of solar systems paired with battery storage.
That demand is especially strong among major technology companies and hyperscalers, which are investing aggressively in utility-scale solar and energy-storage projects to feed data centers and protect against grid strain. The rapid expansion of artificial intelligence and cloud computing has pushed power use higher just as companies are looking for cleaner and more predictable electricity supplies.
But the market is not expanding in a straight line. Policy uncertainty after the One Big Beautiful Bill Act has narrowed the eligibility window for key clean-energy tax incentives, and that change is already filtering through project timing and financing. Supply-chain pressures are also weighing on the industry, while residential solar is facing weaker economics after changes such as California’s Net Billing Tariff.
The contrast is shaping the sector’s next phase. Large-scale utility projects and battery-backed systems are still drawing capital, but the faster the market grows, the more it depends on stable rules, available equipment and economics that still work for homeowners. For now, the message from the latest forecasts is clear: solar power is still winning on demand, even as Washington and state policy make the path less certain.
The question for the industry is not whether solar will keep expanding. It will. The real test is whether companies like First Solar, Enphase Energy and Canadian Solar can keep pace with the demand surge while absorbing the costs and delays that policy changes have put in the way.
