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The solar energy state of the union: How the industry is growing across the U.S.

Solar panel array in desert at sunset

Article Summary

Solar energy is rapidly expanding across the United States with utility-scale solar projects operational in all 50 states, the District of Columbia and Puerto Rico. This growth highlights the increasing role of solar in the nation’s clean energy future.

Key Takeaways

  • Texas and California lead the way in current utility-scale solar capacity and continue to see many new projects break ground.

  • States like Kansas, Kentucky, Missouri and Oklahoma saw rapid growth in solar capacity in 2025, signaling broadening adoption beyond traditional leaders.

  • As new markets emerge, developers should have strategies around identifying the right locations for future projects.

Solar energy continues to be the dominant source of new electric generating capacity in the United States, and that means development is happening across the country.

There is now at least one operational utility-scale solar project in all 50 states, the District of Columbia and Puerto Rico, according to the American Clean Power Association’s Annual Market Report. On top of that, large solar installations accounted for more than half of the record-setting 50.3 gigawatts of utility-scale clean power added to the grid last year.

These figures show the scope of the solar energy market today and hint at where the industry is headed. With utility-scale solar growth on an upward trajectory, it’s a critical time for developers to identify the right places to build future projects and work with partners that have experience across multiple regions.

Here are a few of those locations to keep a close eye on in the years ahead.

Texas

The Lone Star State remains the leader in the clubhouse when it comes to utility-scale solar energy. Texas installed 7,637 megawatts of new capacity in 2025, the most of any state, and its total capacity of nearly 35,000 megawatts is also the most in the country.

This positions Texas at the center of any conversation involving solar energy. With vast open land, abundant sunshine, and a deregulated energy market that promotes market competition and allows many consumers to choose their provider, the state is rapidly expanding large-scale solar developments to meet growing energy demands and support economic growth.

Aerial view of large solar power farm

California

California is second to Texas in total utility-scale solar energy capacity at just over 24,000 megawatts, and the state continues to be a leader in renewable energy overall.

The recently enacted Opt-In Certification Program offers developers an expedited pathway to get new clean energy projects approved, which positions the state for further growth. Mortenson and IPX Power’s Darden Solar + Storage project was the first project to be approved under the new program. By making the permitting process quicker and easier, the state hopes to see its pipeline of solar projects expand in the years ahead. This is critical because California has set a goal of generating 100% of its electricity from renewable and zero-carbon sources by 2045. 

Like Texas, California also has large tracts of open land and ample sunshine, which coupled with expedited approvals, makes the state an attractive destination for future solar projects.

Aerial view of large solar farm

Kansas, Kentucky, Missouri and Oklahoma

These four states in America’s heartland were among the fastest risers in 2025, with over 60% of each state’s total solar operating capacity added just in the past 12 months.

The cumulative capacity of Kansas, Kentucky, Missouri and Oklahoma is only about a tenth of the capacity in Texas alone. And without as much available land as either Texas or California, these four states are unlikely to challenge for the top spot in the overall rankings.

However, the rapid growth in this region paints a picture of solar energy’s impressive expansion across the board. As renewable energy markets in Texas and California continue to develop and mature, these four states plus other locations in different corners of the U.S. should see further build out. 

The state of solar energy is promising

With the U.S. utility-scale solar energy industry growing rapidly, there is opportunity all over the map. Even as we've passed the July 4 deadline for projects to begin construction and qualify for the federal solar Investment Tax Credit, we are still seeing massive demand across America heading into the second half of 2026 and beyond.

As a result of this demand, new markets are likely to emerge in the coming years, which makes now the perfect time for developers to identify the right locations and develop strategies that position new projects for success.