Solar energy accounted for 53 percent of newly added capacity to the US grid in 2023, according to the Solar Energy Industries Association. The residential market also expanded significantly. As 2025 approaches, several trends are shaping the solar energy landscape.

As photovoltaic (PV) technology develops, the solar business keeps changing and less expensive solar panels are resulting from its advances. Solar panels with more energy output per unit area of installation will arise from this current solar energy trend extending into 2025 and beyond. Using more efficient materials in panel construction, such as perovskite solar cells, which have the potential to achieve 30 percent efficiency levels, helps manufacturers boost solar panel performance.

Utility-scale solar projects are playing a growing role in meeting energy demands, particularly from data centers. These large-scale projects involve extensive solar arrays placed in open areas like farms and deserts. Another trend is the integration of utility-scale batteries, which store excess solar energy during the day and release it when demand rises or solar availability decreases. This reduces reliance on fossil fuel backup systems and enhances grid stability, increasing solar energy’s share in the power mix.

Floating solar farms, or floatovoltaics, are gaining traction in offshore and coastal areas. Limited land availability drives the search for alternative project sites, especially in densely populated regions where space for ground-mounted solar systems is scarce. Floating solar installations on lakes, reservoirs, and coastal waters are emerging as a practical solution.