Booming energy demand is driving a scramble to set up new generating capacity, and one technology is proving to be the clear winner. Newly released federal data shows that solar power grew by more than 35 percent year-over-year in 2025, outpacing all other forms of generation. The US solar industry installed 11. 7 gigawatts direct current (GWdc) of capacity in Q3 2025, a 20% increase from Q3 2024, a 49% increase from Q2 2025, and the third largest quarter for deployment in the industry's history. Following a low second quarter, the industry is ramping up as the end of. The U. solar market in 2025 is characterized by record installation growth coupled with significant market headwinds and shifts. As of September 2025, deployment numbers are soaring to new highs, yet industry players also face challenges like policy uncertainty, financing hurdles, and supply. A new analysis from global energy think tank Ember shows that solar power accounted for 61% of the growth in US electricity demand last year, highlighting how central solar has become as power demand accelerates. 1% increase, the. Each quarter, the National Renewable Energy Laboratory conducts the Quarterly Solar Industry Update, a presentation of technical trends within the solar industry. Each presentation focuses on global and U. supply and demand, module and system price, investment trends and business models, and. Solar energy met nearly two-thirds of the growth in US electricity demand in 2025. US electricity demand rose by 3. Solar now. In 2024, between 554 GWdc and 602 GWdc of PV were added globally, bringing the cumulative installed capacity to 2.