Solar generation in the United States surged by 35 percent in 2025, enough to surpass hydroelectric power as a grid source for the first time, according to full-year data from the US Energy Information Administration. This milestone occurred despite overall electricity demand rising by 2.8 percent, or 121 terawatt-hours, a notable increase after decades of relative flatness.

The demand growth complicated the energy transition. While utility-scale and small solar added 85 terawatt-hours—covering about two-thirds of new demand—the remainder was met by fossil fuels. Coal generation rose by 13 percent as high natural gas prices and hardware delays made coal more economically viable. Secretary of Energy Chris Wright also ordered certain coal plants to remain available.

Policy decisions contributed to this mix. The Trump administration's promotion of natural gas exports tightened domestic supply and raised prices, indirectly aiding coal. Yet market forces continue to favor renewables. Planned additions for 2026 include 43 GW of solar capacity and 12 GW of wind, including two offshore projects the administration failed to block. In absolute terms, natural gas remains the dominant US grid source, but solar's economic momentum is undeniable.