Residential solar power on the rise in U.S., particularly in Texas, California

What you probably already know: Solar power came online last year in a big way, opening doors to a future that is less depending on fossil fuels for energy. A new report out last week found that solar accounted for 53% of the new electricity capacity added to the power grid. It’s the largest jump in one source of power in two decades, and the first time ever that solar power has grown by so much. Combined with new battery storage systems, solar power could change the way Americans get their power.

Why? Demand for power is very much on the rise as artificial intelligence systems eat up enormous amounts of electricity. That has many entrepreneurs and tech companies seeking ways to develop cleaner sources of energy to power the grid. Meanwhile, the costs of installing solar panels on homes have fallen significantly. Additionally, many of the new solar power systems being installed also have batteries — about 25% of new residential installs have storage capacity, allowing the systems to work even when it’s not sunny.

What it means: Texas led the country in new installations, beating out California for the second time in three years. Colorado and Ohio are also near the top of the list. More than 800,000 people added solar power to their homes in 2023, bringing solar capacity to 177 GW. Most states and some cities have solar power tax credits to encourage residents to spend upfront — installations can run between $10,000 and $25,000 — in order to realize eventual savings. Federal tax credits are also available for homeowners who install solar panels.

What happens now? Despite the gains, the Trump Administration seems determined to stop the expansion of sustainable energy sources. Chris Wright, Trump’s pick for energy secretary, has been a fierce critic of solar and wind energy, and has pledged to reverse the country’s focus on climate change. Wright was previously an executive with a fracking company and is a supporter of Trump’s plans to expand oil and gas production while systematically eliminating every federal policy that aims to reduce the effects of climate change.