US Solar Energy Market CAGR to rise upto 10.96% by 2031, Driven by Solar-Plus-Storage Projects and Residential Installations, Says Mordor Intelligence
Hyderabad, India – November 10, 2026: The US solar energy market is projected to increase from 269.54 GW in 2026 to 453.37 GW by 2031, registering a CAGR of 10.96% during the forecast period (2026–2031). The growth is supported by federal tax incentives, corporate renewable energy procurement, domestic solar manufacturing, and increasing adoption of solar-plus-storage systems.
The Inflation Reduction Act (IRA) continues to influence solar project economics through investment and production tax credits, encouraging developers to expand utility-scale installations and domestic manufacturing capacity. At the same time, companies are entering long-term renewable electricity agreements to manage energy costs and meet sustainability commitments.
US Solar Energy Market Upcoming Trends
Federal Tax Incentives Supporting Solar Investments: Investment and production tax credits under the Inflation Reduction Act are improving project economics and encouraging utility-scale solar development across several states. Domestic-content incentives are also supporting investments in local module manufacturing.
Solar Plus Storage Projects Gaining Adoption: Developers are increasingly combining solar installations with battery storage to supply electricity during evening peak-demand periods. These integrated projects are attracting interest from utilities and commercial electricity buyers.
Residential solar installations expanding: Battery-supported rooftop systems are gaining attention among homeowners seeking electricity cost management and backup power during grid interruptions. Residential installations are forecast to grow at an 18.3% CAGR through 2031.
US Solar Energy Market Segmentation
By Technology: Solar Photovoltaic (PV) and Concentrated Solar Power (CSP).
By Grid Type: On-Grid and Off-Grid.
By End-User: Utility-Scale, Commercial and Industrial (C&I), and Residential.
- Solar photovoltaics accounted for 99.35% of the US solar energy market share in 2025, maintaining its position as the leading technology.
- On-grid installations represented 97.6% of installed capacity during the same year, supported by their connection to established electricity networks.
- By end-user, utility-scale projects held 73% of installed capacity in 2025, while residential installations recorded the fastest growth outlook, with an expected CAGR of 18.3% through 2031.
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United States Remains the Central Market for Solar Energy Development
The United States is the primary market covered by this analysis, with solar development expanding across several states. Texas led new utility-scale installations in 2025, adding more than 15 GW of capacity, supported by its electricity market structure and growing interest in solar-plus-storage projects. California continues to have the largest installed solar base, exceeding 50 GW, although transmission congestion presents challenges for additional deployment.
- First Solar Inc.
- NextEra Energy Inc.
- Hanwha Q CELLS USA
- Canadian Solar Inc.
- Tesla Energy
- JinkoSolar Holding Co. Ltd.
- Sunrun Inc.
- Enphase Energy Inc.
- Trina Solar Ltd.
- Nextracker Inc.
Regional Market Share Analysis
Established Solar Markets and Utility-Scale Installations
Regionally, the US solar energy market is led by states with established solar installations and growing utility-scale project development. California holds the largest installed solar capacity, exceeding 50 GW, supported by its established solar infrastructure and renewable energy targets. Texas led new installations in 2025, adding more than 15 GW of utility-scale capacity, driven by favourable project economics and increasing solar-plus-storage development.
About Mordor Intelligence
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