Solar and storage installations captured an overwhelming 91% of all new power capacity added to the US grid in Q1 2026, according to a new report from the Solar Energy Industries Association (SEIA) and Wood Mackenzie. The figure underscores the accelerating dominance of renewable-plus-storage systems in the nation's energy expansion.
Utility-scale solar led the surge, with developers adding 12.1 GW of new capacity during the quarter, a 27% year-over-year increase. Residential solar additions grew 18% to 1.9 GW, while commercial installations rose 8% to 0.8 GW. Paired storage capacity hit 5.2 GWh, up 21% from Q1 2025.
The report credited falling battery costs and improved grid interconnection timelines for the growth. Over 70% of new solar projects now include co-located storage, a record share. SEIA noted that the Inflation Reduction Act's investment tax credits remain a key catalyst, despite ongoing supply chain constraints on transformers and switchgear.
Geopolitically, the shift reduces reliance on natural gas imports and bolsters grid resilience, particularly in regions prone to extreme weather. However, trade tensions with China over solar panel tariffs persist, keeping module prices volatile. The report warned that delays in federal permitting reform could throttle future capacity additions.
While solar and storage's share is historic, critics argue that without parallel advances in long-duration storage or grid-scale nuclear, intermittent renewables alone cannot ensure baseload reliability during multi-day cloud cover or calm periods. The rapid buildout also strains local grid infrastructure, raising upgrade costs for utilities.