The Three States Driving America’s Solar Boom
June 8, 2025
In addition to California, which has long been a renewable energy powerhouse, some unexpected states have come out on top for green energy production in the United States in recent years. Texas and Florida join the Golden State as the top wind and solar energy producers in the U.S., having invested heavily in increasing their renewable energy capacity.
Around a decade ago, just three states had over 1 GW of installed solar capacity, largely owing to the high cost of developing solar farms and the volatility of solar power. Now, 33 U.S. states have over 1 GW of installed solar capacity, with more states expected to follow each year. This has been supported by improvements to solar panel technology, the falling cost of components, and the greater availability of solar energy storage in the form of utility-scale batteries. Under the Biden administration, many companies invested heavily in the rollout of solar power, encouraged by financial incentives introduced under the 2022 Inflation Reduction Act (IRA) and in support of a green transition.
The top three solar-power-producing U.S. states are California, Texas, and Florida, followed by Arizona and North Carolina. California has an installed solar capacity of 51.9 GW, an increase from 4.96 GW in 2024. It invested around $8.7 billion in expanding its solar power capacity in 2024. Texas has 41.4 GW of solar capacity, up from 11.6 GW in 2024, while Florida has more than 18.6 GW of total solar capacity installed, an increase from 4.7 GW in 2024. Meanwhile, Arizona has 9.7 GW of solar power installed, up from 1.8 GW in 2024, and North Carolina has 9.6 GW installed, up from just 196 MW in 2024.
After long relying on fossil fuels for its energy, Florida has shifted towards renewable alternatives in recent years by investing in the development of its green energy capacity. Florida overtook California last year in terms of new utility-scale solar capacity, developing 3 GW of large-scale solar, which placed it only behind Texas. It also came second in terms of residential solar power installations, following California for the most rooftop panels installed each year between 2019 and 2024. Florida is expected to continue this solar power development, benefitting from its reputation as the Sunshine State.
Solar power contributes around 8 percent of Florida’s electricity production at present, although most of its power continues to come from fossil fuels. Many Floridians now favour solar power, particularly as it has helped boost their energy security in the face of an increased number of extreme storms in recent years. “Floridians have long understood that not only is solar good for your pocket, it’s also good for your home resilience… In the face of increasing extreme weather events, having access to reliable energy is a big motivator,” stated Yoca Arditi-Rocha, the executive director of the climate action nonprofit the CLEO Institute. In addition, the tax credits made available under the IRA have helped reduce the cost of solar panels for consumers.
Meanwhile, California surpassed 30 percent annual share of solar in its electricity mix for the first time. It also decreased the volatility of its solar power by focusing on expanding its energy storage capacity. California installed 20 percent more battery capacity than it did solar capacity last year, allowing it to shift a significant proportion of its daytime solar power to the evening. In 2024, the state also saw a fall in gas generation as it continued in its efforts to shift to clean energy sources. In 50 of the first 82 days of this year, wind, water, and solar power combined more than 100 percent of California’s electricity demand for at least part of the day.
Having invested heavily in the expansion of its renewable energy capacity, Texas is now producing record levels of solar and wind power. In the first week of March, the ERCOT power grid set records for most wind production (28,470 MW), most solar production (24,818 MW), and greatest battery discharge (4,833 MW), collectively meeting 76 percent of ERCOT’s energy demand and marking a major milestone for Texan renewable energy.
Texas is dominating the development of green energy and battery storage capacity in the U.S., having installed almost 80 percent more combined solar, wind, and battery capacity than any other state. The Lone Star state had 42,000 MW of wind power, 22,000 MW of solar power, and 6,500 MW of utility-scale battery capacity installed by the end of 2024.
The U.S. is expected to continue expanding its solar power capacity, despite the current uncertainty facing the country’s renewable energy sector. As solar panel technology improves and prices continue to fall, more companies and individuals are looking to invest in solar energy. Meanwhile, utility-scale battery storage now helps to provide a more stable supply of clean power to the grid, making it more resilient and supporting a transition away from fossil fuels.
By Felicity Bradstock for Oilprice.com
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