Solar energy is a free, renewable source of electricity as long as there is adequate sunlight and you have the right system to capture it. While there is no source of electricity that is 100% environmentally friendly, solar panels are much better for the environment than many other options available. It’s “clean,” meaning no greenhouse gas emissions occur when using this energy source. As a result, it helps to reduce our carbon footprint.
Whenever you feel the sun’s warmth on your skin or have to squint your eyes while you’re outside, that’s solar energy reaching the earth. It is a critical part of all life. It warms the Earth, sustains plant and animal life, and even causes wind and weather events.
HOW SIGNIFICANT IN OUR ENERGY SYSTEM IS SOLAR?
Extremely significant and growing rapidly. In 2025 combined utility-scale and small-scale solar produced close to 9.0% of total U.S. electrical generation, a major leap from 3.9% in 2023 and 1.6% in 2018. Even more impressive, in 2025, 54% of all new electricity generating capacity added was solar.
Looking ahead, the EIA expects a 17% increase in solar generation and a 49% increase in U.S. solar operating capacity through 2027.
Already in 2026, cumulative solar capacity across the United States has reached 287.7 gigawatts (GW), a volume now capable of powering 48 million American homes.
WHAT STATES ARE LEADING IN SOLAR GENERATION?
The top 10 states producing solar are California followed by Texas, after which comes Florida, Arizona, North Carolina, Illinois, Nevada, New York, Virginia and finally Georgia.
In 2025, California was powered by two-thirds clean energy, making the state the largest economy in the world with that level of clean energy. California ran on 100% clean electricity for some part of the day for almost every day in 2025. Green jobs outnumber fossil fuel jobs seven to one in the state.
New Mexico’s clean-energy transition is emerging as a success story in a state long associated with fossil-fuel production. In just five years, solar, wind, and batteries overtook fossil fuels, keeping air conditioners running while slashing pollution. And electricity prices remained cheaper than average.
Amusingly, and according to the U.S. Solar Market Insight 2025 Year in Review report, over two-thirds of all solar capacity installed in 2025 was built in states won by President Trump with Texas, Indiana, Florida, Arizona, Ohio, Utah, and Arkansas ranking among the top ten states for new installations.
HOW DOES SOLAR POWER WORK?
Sunlight alone isn’t enough to generate usable energy. For that, we need a solar power system.
There are two technologies used for converting sunlight and heat into solar energy: concentrating solar-thermal power (CSP) and photovoltaics (PV) — more commonly known as solar panels.
- CSP (concentrating solar-thermal power systems)
Concentrating solar-thermal power systems (CSP) use mirrors to reflect sunshine and create heat which can then be stored for later or used as electricity. CSP can also be used as an energy storage system. CSP plants require financing, water access, areas of high solar radiation, and access to transmission infrastructure.
CSP is primarily built for large-scale, utility power plants rather than individual consumer or residential use. No new plants have been built in the U.S. since 2016.
The most common technology for producing electricity from solar energy is photovoltaic — or solar — panels. PV is the technology used in solar panels. Sunlight hits the solar panel and becomes absorbed into the PV cells, creating a DC electrical current.
Solar panels are lined with photovoltaic (PV) cells. Each cell contains a silicon semiconductor, a material that conducts electricity. When this semiconductor absorbs sunlight, electrons get freed. These electrons start moving in an electric current, all moving in the same direction. This current is directed to an external object, which is how we get electricity. However, the electricity produced is direct current, (DC) so it must go through an inverter to be usable as alternating current (AC) electricity.
HOW IS SOLAR ENERGY USED IN EVERYDAY LIFE?
Anything that needs electricity or batteries can use solar energy: your phone, laptop, TV, car, oven, fridge, and even your water heater.
- Electricity
Solar panels allow homeowners and businesses to harness sunlight and convert it into usable electricity. It’s quickly spreading in popularity as PV panel costs have decreased, and more people are turning to alternative energy sources to save on skyrocketing utility costs.
A solar panel system generates electricity from the sun shining on the panels. If you connect your solar panel system to the traditional electrical grid, any appliances that use electricity use the energy from the PV panels first, which reduces your on-grid power usage.
Homeowners who join a net metering program (where available) can send any extra energy to the electric grid and receive credits.
Alternatively, some users connect PV panels to portable power stations to keep energy in reserve independent of the grid. Solar generators like the EcoFlow DELTA series can supply enough energy for an entire home, acting as a reliable source of off-grid power for blackouts. Other options, like the EcoFlow RIVER 2 series, are suitable for portable uses, such as camping, backpacking, and RV adventures.
- Lighting
Just like solar energy can power electronics, it can also provide light. Solar lights have become popular for patios, walkways, and balconies because they absorb light all day and stay lit up all night without extra power.
Solar lighting is a cost-effective way to keep the outside of your home lit up during the night without watching your power bill suffer.
- Transportation
Solar-powered vehicles have emerged. A car that can be charged using renewable energy eliminates the need for fossil fuels and power grids, which are currently the only two viable ways to power vehicles. More on Electric Vehicles here.
Solar energy also supplies electricity for other transportation and vehicular needs too. Power kits integrate with RVs, campers, and vans, allowing users to use sunlight to charge appliances and devices.
IS IT AFFORDABLE?
For most of solar’s history, the argument against it was cost. Over twenty-five years ago, a watt of solar cost about $5—making its power more than ten times the price of coal's. A quarter of a century is a long time for a manufactured technology growing at double digits. Today, that watt costs roughly 10 to 30 cents, and the International Energy Agency (IEA) has labeled solar the cheapest electricity in history, with the price of a utility-scale photovoltaic system dropping by roughly 60% since 2010.
HOW MANY JOBS ARE DEPENDENT ON SOLAR?
According to the latest Solar Energy Industries Association (SEIA) Market Insight Reports and the Interstate Renewable Energy Council (IREC) National Solar Jobs Census, there are now 280,119 core solar jobs, 11,177 operating solar businesses, and over 6.1 million solar systems installed across the United States
WHAT EFFECT HAS THE GROWTH OF SOLAR HAD ON CARBON EMISSIONS
The rapid expansion of U.S. solar infrastructure has dramatically reduced environmental impacts. U.S. solar installations now offset approximately 280 million metric tons of carbon emissions annually, as the total value of the domestic solar market has climbed to $69.1 billion.
This collective footprint reduction—the equivalent of removing millions of gas-powered cars from the road—is driven by a distinct mix of decentralized and centralized systems. According to the latest Solar Energy Industries Association (SEIA) Market Insight Reports, utility-scale installations dominate the market, accounting for roughly 80% of all new capacity added annually, such as the 34.7 gigawatts (GW) built in a single year to feed the bulk power grid. Conversely, the highly visible residential rooftop sector accounts for a smaller but vital share, adding approximately 4.6 GW of capacity to decentralized distributed grids annually while giving millions of individual homeowners direct carbon offsets and local energy independence.
WHAT WILL AFFECT FUTURE GROWTH?
The future growth of solar energy will be driven by cheaper battery storage, expanded transmission lines, and automated local permitting software. The combination of shifting economic incentives, grid upgrades, and advanced technologies will accelerate the transition.
- Next generation storage & Grid Technology: New iron-air and flow batteries will store solar power for days, solving the issue of cloudy weeks; Artificial intelligence will automatically route solar power across cities, preventing energy waste during peak production hours; Energy companies (VPPs) will link thousands of home batteries together, creating a unified power reserve for local communities
- Infrastructure & Grid Expansion:Building new long-distance, high-voltage transmission lines will carry cheap desert solar power to cloudy, densely populated cities; Updating regional rules will allow giant utility-scale solar farms to hook up to the main power grid faster.; Smaller, self-contained solar systems (microgrids) will grow rapidly to protect local towns from extreme weather power outages.
- Lower Friction & Policy Shifts: Free automated digital platforms like SolarAPP+ will allow local cities to approve home solar rooftop designs instantly; New regional manufacturing plants will stabilize parts delivery and lower shipping costs for solar panels; Smaller businesses will use community solar projects to buy clean energy without installing panels on their own roofs.
CURRENT FEDERAL TAX SUBSIDIES
Under recent legislation, the traditional 30% Section 25D Residential Clean Energy Credit expired for direct homeowner purchases. If you directly buy and own a home rooftop solar system, there is no longer a federal tax credit available at tax time.
There is one exception: Federal credits do still apply to solar systems owned by a third party. Homeowners can access federal incentives indirectly by choosing solar leases or Power Purchase Agreements (PPAs) through providers like Sunrun, who pass the tax savings down through lowered monthly utility rates.
NEW FORMS OF SOLAR DELIVERY
- Balcony solar. In March, 2025 Utah became the first state in the U.S. to legalize "plug-and-play" balcony solar, allowing residents to install small-scale solar panels (up to 1,200 watts) on their balconies, patios, or fences and plug them into standard 120V outlets.
Already legal in Germany since 2017, balcony solar exploded there in 2023-2024 making it a mainstream boom. As the Trump administration began removing subsidies for solar installations in the U.S., it became inevitable that Americans would become intrigued by buying and plugging panels into one of their outlets thereby reducing their electric bill.
Utah was followed by Maine and Virginia (April 2026), New Hampshire, Maryland & Colorado (May 2026), Vermont & Connecticut (June2026) and most recently New Jersey (September 2026). Their legislation all legalized balcony solar. New York and California are still waiting for their governors’ signatures. Eight other states have legislation pending. Keep up to date at PluginSolarUS here.
Balcony solar isn’t meant to take your home “off-grid.” It simply reduces the amount of electricity you need to buy from your utility. Every home has a baseline of energy used by “always-on” appliances, like your refrigerator, Wi-Fi router, and standby electronics. A standard 800 Watt balcony kit can often cover 15% to 25% of a typical apartment’s monthly electricity needs.
Long popular in Asia, floating solar “floatovoltaics” beginning to catch on in the U.S. From solar panels on a reservoir in Cohoes, NY saving the city $500,000 each year to a wastewater plant in Healdsburg, CA and a lake at a military base in North Carolina.
WHEN WAS SOLAR ENERGY DISCOVERED?
Humans have been harnessing sunlight long before electricity existed. As early as 700 B.C., humans reflected sunlight off shiny surfaces to light fires. In 300 B.C., people used mirrors to reflect sunlight and light torches for special ceremonies.
These are examples of ancient uses of solar energy, but the technology used to capture the sun’s energy today didn’t come about until 1839. Edmond Becquerel was a 19-year-old French physicist credited with discovering the photovoltaic effect. He found that photovoltaics created an electric current when exposed to light. This discovery is the basis of the technology used today with photovoltaic panels.
Further developments came about in 1888 when Edward Weston invented two solar cells that converted energy from the sun into electricity. The light heated a cell which caused electrons to be released and a current to flow. That current flow created heat. Thus, Weston’s invention turned sunlight into heat, producing electricity. Weston received two patents for his inventions.
The technology that goes into solar power results from scientific discoveries and decades of research. What was once an expensive and inaccessible technology for generating renewable energy is now available for homes and businesses across the globe.
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