State of Utility-Scale Solar at the Start of 2026
For the first time ever, installed solar capacity surpassed wind capacity, reaching more than 160 GW by late 2025. Solar was the largest source of new generating capacity for 26 consecutive months (September 2023 - October 2025), accounting for 72% of all new capacity additions through the first 10 months of 2025. On the backbone of this historic run, industry analysts forecast utility-scale solar capacity to grow from 290 billion kilowatt-hours (KWh) in 2025 to 424 billion KWh by 2027, approximately 70 GW of new capacity.
Despite federal policy changes, solar power still offers a solid value proposition, both in terms of grid-hardening benefits and market economics. Utility planners and grid operators remain committed to incorporating solar and batteries as important parts of an evolving power system, since the levelized cost of electricity (LCOE) for renewables makes them competitive in automated energy markets that select the least-cost units to run in each hour.
Utility-Scale Solar Challenges in 2026
Some of the biggest challenges developers and EPCs face, particularly interconnection delays, labor force shortages, and module procurement, stem from the same increasing electricity demand driving the industry’s growth.
Utility-Scale Solar Interconnection and Labor Woes Will Continue
It’s a tired refrain for the industry by now, but interconnection delays show no sign of improvement in the near term, with queues still stretching out for years. Forecast load growth far exceeds current grid interconnection capacity, encouraging "Bring Your Own Capacity" solar strategies and behind-the-meter (BTM) solutions as workarounds.
While 2026 is expected to be a record year for interconnections, the solar labor market remains a critical constraint across all skill levels and trades. Not only do developers and EPCs need more skilled subcontractors and ground crews, but analysts suggest the industry will also need 50 additional EPC firms to absorb the surging demand for project delivery.
Increasing Complexity in Procuring Domestic PV Module Supply
For many EPCs, supply chain security remains fragile. Current policy uncertainty regarding potential tariffs on imported polysilicon and other components has accelerated procurement timelines as solar companies rush to secure equipment ahead of possible trade restrictions. At the same time, regulatory requirements for supply chain traceability, along with incentives for sourcing modules with domestic content, both increase the complexity of procurement decisions while narrowing the supplier pool. For developers seeking to qualify projects for investment tax credits under shortened timelines, these requirements mean earlier supply chain coordination and procurement commitments.
The Takeaway: With labor availability tightening and AI-driven demand outpacing interconnection capacity, EPCs and developers must lock in labor pipelines and long-lead module procurement strategies sooner than in the past to secure project viability and success.
Utility-Scale Solar Opportunities in 2026
Thankfully, the opportunities in the utility-scale solar sector far outweigh the challenges. Three strategic areas stand out.
Hyperscale AI Data Center Energy Demand
Data center electricity demand could double by 2026, potentially reaching 260 terawatt-hours in the United States — 6% of national demand. This surge creates unprecedented opportunities for solar developers. Major technology companies have signed power purchase agreements (PPAs) for GWs of solar generation to enable data center operators to meet carbon neutrality targets and environmental, social, and governance (ESG) commitments while securing long-term electricity supply at predictable prices.
Solar's ability to deploy faster than nuclear or combined gas generation makes it the primary technology for meeting immediate load growth. In particular, with utilities struggling to keep pace with interconnection requests, behind-the-meter (BTM) and off-grid systems are becoming more popular for data centers.
Colocation of solar generation not only accelerates “Time to Power” by simplifying permitting and direct connections, but it can also reduce curtailment exposure and improve project economics. EPCs can reduce grid dependency and sidestep lengthy interconnection studies by structuring projects to directly serve load rather than selling power into wholesale markets.
In high-curtailment markets, forward-thinking developers are also taking renewable assets that once faced basis risk and reduced revenue and retrofitting them as direct-load opportunities. This route unlocks previously stranded or underutilized assets while still providing data center operators with a dedicated clean power supply and circumventing transmission bottlenecks.
The Takeaway: The hyperscale AI data center market is relatively new to some developers and EPCs, so it will be crucial to have an experienced partner with a proven track record in large-scale solar projects and in integrating renewable energy systems.
More Strategic Sector and Market Targeting
As developers reposition business plans in response to changes in federal tax credit structures, some companies may have to shift focus to new target markets and ISOs, and align projects with regions to minimize risks and leverage the company’s strengths to gain a competitive advantage. Overlaps with markets where data centers are clustering in hubs offer avenues for growth.
Beyond focusing on regions with hot markets, don't overlook high-potential customer segments. In particular, companies with international parent corporations that won’t be deterred from adopting solar in a post-ITC world. Many of these corporations are already facing delays in scaling their non-negotiable long-term net-zero goals due to regulatory pressure.
Advanced Solar PV Technologies to Lower LCOE
Next-generation solar technologies are reshaping project economics, with performance advantages arising from several factors. Trinasolar’s Vertex N N-type TOPCon modules exhibit annual degradation rates significantly lower than conventional PERC technology. Over a 25-year project life, this difference compounds into substantially more energy production and revenue.
Another aspect involves system voltage architecture as a frontier for cost reduction. Trinasolar’s 2000-volt Vertex N module enables EPCs to design systems with extended string lengths to reduce inverter counts, cut capital expenditures (CAPEX) and balance-of-system (BOS) costs, and lower LCOE. A Black & Veatch analysis comparing 1500V and 2000V systems for a hypothetical 125-megawatt project in Florida found that the system using Trinasolar’s 2000V Vertex architecture delivered a much lower LCOE. The 2000V system allows for longer strings with more modules per circuit, minimizing tracker lengths and wire harnesses while optimizing land utilization.
The utility-scale solar market in 2026 presents a paradox: extraordinary growth opportunities, constrained with challenges created by that growth. Success will demand operational excellence in labor management and supply chain coordination, strategic positioning and partnerships, and using cost-reducing technologies like Trinasolar’s Vertex modules.
Developers and EPCs that navigate these dynamics with intentionality—locking in resources early, targeting high-growth segments, and circumventing grid bottlenecks—will capture disproportionate value as solar continues its historic expansion.
