Riding the ‘Solar Coaster’: How to Navigate Today’s Challenges to Meet Energy Demand
Article Summary
Navigating rapid growth in today’s solar energy landscape amid policy and market uncertainty is critical to success. The industry’s strong demand — paired with ongoing fluctuations in tax credits and trade — reinforces the need for collaboration, strategic alignment and disciplined execution. By focusing on proactive planning and trusted partnerships, teams can navigate the “solar coaster” while delivering consistent, high-impact results.
Key Takeaways
- Strong partnerships are critical to managing risk and uncertainty
- Market demand continues to accelerate solar growth
- Policy and trade fluctuations require proactive strategy
- Consistent execution enables long-term success in an evolving market
The solar energy industry in the United States has seen massive growth in the past few decades despite a few downturns along the way. Since 2010, solar deployments have grown at an average annual rate of 28%. In that same time period, solar’s share of U.S. electricity generation has risen from less than 0.1% to nearly 8% today1.
But while the industry is on an upward trajectory overall, growth is not always linear. Regular ups and downs have earned the solar industry the moniker the “solar coaster.”
In this climate, it’s important for project owners to have a clear strategy. All participants involved in a project must work together to manage development, financing and construction risks.
Here's a snapshot of the current state of the industry and how to stay grounded through its twists and turns.
High Demand is Fueling Solar Investments
The U.S. solar industry installed 43 gigawatts of new capacity in 2025, which along with storage, represented nearly 80% of all new energy capacity added to the grid. It was the fifth straight year in which solar was the dominant source of new U.S. energy capacity2. Looking ahead, an additional 246 GW of solar generation is expected to be added to the grid by 20303.
A key driver of this demand is the relative affordability of renewable energy. According to a Lazard calculation of the levelized cost of energy, renewable energy remains the most cost-competitive form of generation. Renewables, including solar, are also the quickest-to-deploy generation resource, ahead of conventional sources such as natural gas and coal4.
The combination of affordability and speed to market has made clean energy an attractive sector for investments. In the first half of 2025, more than $67 billion was invested into clean energy and manufacturing, and the industry continues to attract the majority of new energy-related investments5.
What’s Next for Tax Credits?
Federal tax credits have also played a role in driving record-setting growth of the U.S. solar industry. In particular, the Inflation Reduction Act (IRA) of 2022 has been a significant driver of the tax credit market for the past few years. The IRA extended credit durations, broadened eligibility and introduced transferability, or the option to sell credits to third parties.
While 2025’s One Big Beautiful Bill (OBBB) introduced more restrictive policies when it comes to renewable tax credits, solar has evolved to the point where it can largely withstand these types of fluctuations. The combination of improved technology efficiency, the decreasing cost of solar installations and high demand for power has put the market in a position to succeed with or without federal tax incentives.
And What About Trade?
Solar tariffs have been their own roller coaster over the last few years. As America works to build more manufacturing capacity, the industry is still awaiting rules of the road from the U.S. Treasury Department for what constitutes domestic products and how this will impact costs associated with new solar installations.
Demand for solar remains high, but dealing with challenges — including the uncertainty around tax credits and trade — is a constant in the industry.
When it comes to navigating today’s challenges and riding the solar coaster, partnering with the right teams has never been more critical to support managing risk and delivering your projects.
[1] SEIA: Solar and Storage Industry Research Data
[2] SEIA: U.S. Adds 43 GW of New Solar Capacity in 2025, Marking Fifth Straight Year as Top Source of New Power
[3] SEIA: Solar Market Insight Report Q4 2025
[4] Lazard: Lazard’s Levelized Cost of Energy+ (LCOE+)
[5] Crux: The State of Clean Energy Finance:2025 Mid-Year Market IntelligenceReport