ITC expiration led to surge in solar installs in Q2 2026

The United States had a strong quarter for solar installations, adding 11.4 GW of new electricity generating capacity in Q2 2026. This is up from 7.8 GW installed in Q1 2026 and 7.5 GW installed in Q2 2025.

The country now has enough operating solar capacity to power more than 50 million American homes, representing over one-third of all households nationwide.  This is according to the latest “U.S. Solar Market Insight” report from the Solar Energy Industries Association (SEIA) and Wood Mackenzie.

Utility-scale solar led the Q2 surge with 9.6 GW installed, up 61% year-over-year. The strong quarter reflects developers moving quickly to bring projects online ahead of the July 2026 safe harbor deadline for tax credit eligibility, while a substantial pipeline of projects will continue supporting solar growth in the years ahead.

Together, solar and storage account for 70% of all new capacity added to the grid in the first half of 2026.

The report’s forecasts show that the U.S. solar market will nearly double over the next five years, underscoring the industry’s ability to quickly deliver large amounts of new power as America works to meet rising energy demand, strengthen grid reliability, and manage energy costs.

“Robust project pipelines and the build out of safe-harbored capacity will sustain roughly 44 GW of annual capacity through 2031,” said Caitlin Connelly, senior analyst at Wood Mackenzie. “However, permitting and the post-ITC transition remain significant headwinds.”

The residential market continues to face challenges following the expiration of the residential solar tax credit, but the outlook remains positive. Forecasts show the residential solar market will return to growth in 2027, as Americans choose solar to lower their electricity bills and improve resiliency.

Key findings:

• The residential segment installed 995 MW of solar capacity, declining 12% year-over-year and 10% quarter-over-quarter.
• The commercial segment installed 638 MW, increasing 11% year-over-year and 27% quarter-over-quarter.
• The community solar segment installed 231 MW, declining 14% year-over-year and 8% quarter-over-quarter.
• The utility-scale segment installed 9.6 GW, increasing 61% year-over-year and 56% quarter-over-quarter.