US Solar Surged 35% in 2025, Overtaking Hydro for the First Time

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.

After decades of relatively flat electricity use, US power demand is rising again. A new report from the US Energy Information Administration shows that consumption jumped 2.8 percent in 2025, thanks to rising industrial activity and the rapid expansion of energy-hungry AI data centers.

While increased fossil-fuel generation met much of that additional demand—a revival in coal, in particular—solar power posted the fastest growth of any major source. According to an analysis by Ars Technica, the Energy Information Administration data shows US solar generation increased by more than 35 percent year-over-year, driven by 27 gigawatts of newly installed capacity.

The surge pushed total solar output above hydroelectric power for the first time in terms of total annual generation. Hydropower output itself was relatively stable compared with the prior year, while solar continued its recent breakneck expansion, with capacity increasing rapidly across multiple regions.

Solar’s surge, which added about 85 terawatt-hours of generation, met about two-thirds of the increased energy demand. This number rose to 73 percent when combined with wind power, which grew by a more modest 2.8 percent.

But the data’s not-so-silver lining is that the remaining demand was met primarily by 13 percent growth in coal power. That bucks the recent trend of coal’s diminishing importance in the US power supply and was driven by a complex confluence of changes in the US energy system.

In previous years, natural gas has been the go-to fossil fuel due to abundant domestic supply and the ability to rapidly ramp power up and down. However, the Trump administration’s tariff policies have made it more difficult and expensive to source the equipment for gas power plants, and rapid expansion in gas exports means domestic utilities are competing with foreign buyers for fuel.