Solar power is now the fastest-growing source of U.S. electricity

Solar power is now the fastest-growing source of U.S. electricity
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In short: The American energy landscape is undergoing a rapid structural shift. While fossil fuels have long dominated the grid, utility-scale solar is now outpacing all other sources in growth. This transition isn't just about environmental goals; it's a massive economic pivot toward the most affordable new electricity available today.

The U.S. electric power sector generated about 4,260 billion kilowatthours (BkWh) in 2025. Looking ahead, the Energy Information Administration (EIA) projects a growth of 1.1% in 2026 and 2.6% in 2027, reaching an annual total of 4,423 BkWh. During this period, the share of electricity from traditional dispatchable sources—natural gas, coal, and nuclear—is expected to drop from 75% in 2025 to about 72% by 2027.

Between 2025 and 2027, large-scale solar power will lead this growth, rising from 290 BkWh to 424 BkWh. This represents a significant capacity surge, with almost 70 gigawatts (GW) of new solar generating capacity scheduled to come online in 2026 and 2027—a 49% increase over the end of 2025. A significant amount of this growth occurs in Texas, where ERCOT solar production is set to expand from 56 BkWh during 2025 to 106 BkWh by 2027.

The transition is supported by a diversifying infrastructure. To balance solar variability, ERCOT's battery capacity is slated to grow from roughly 15 GW in 2025 to 37 GW by late 2027. Meanwhile, the economics of the shift are increasingly favorable; as of 2023, renewable energy was the least expensive source of power generation, even when accounting for upfront installation costs. Solar ranks as the second most competitive source in terms of levelized cost of electricity, trailing only onshore wind.

Despite the rapid rise of solar, other regions show different trends. Wind generation in the Midcontinent Independent System Operator (MISO) grid is expected to see little growth through 2027, averaging just over 100 BkWh annually. Conversely, natural gas-fired generation is rising in some areas, such as the Mid-Atlantic PJM Interconnection, to meet growing electricity demands from data centers.

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