PVTIME – Analysis of official hourly and monthly generation data by the energy think tank Ember has confirmed an historic shift in the US energy mix. For the first time in recorded history, solar power has surpassed coal to become the nation’s third-largest electricity source.
The operational figures for May illustrate the structural change across power generation segments. Solar assets accounted for a record 12.8% of the national electricity supply, while coal’s contribution fell to 12.2%, marking the fourth-lowest monthly reading on record. Meanwhile, natural gas maintained its dominant position across the market, responsible for 37% of all generated power. Over the past five years, coal’s market share has dropped by 38%, while solar penetration has more than doubled.
Ember’s senior data analyst, Nicolas Fulghum, has acknowledged the remarkable evolution of solar power from a marginal energy alternative to one of America’s fastest-growing power resources. The country generated 45.5TWh of solar power in May, marking an annual increase of 17% and surpassing the previous record set in July 2025. The organisation suggests that further record highs are likely in the coming months. Coal output for the same month reached 43.4TWh, which is an 11% year-on-year decline, but a slight improvement on April’s low of 39.3TWh.
The latest industry data from the Solar Energy Industries Association in partnership with Wood Mackenzie revealed that solar expansion is being constrained, with new installations totalling just 7.8GW in the first quarter. This figure represents a 27% year-on-year decrease and a 42% quarter-on-quarter decline. Nevertheless, clean energy hardware, including solar and storage, captured 91% of newly commissioned power capacity, driven by global gas supply disruptions and widespread corporate demand for enhanced energy security.
Industry stakeholders have expressed increasing concerns about restrictive administrative barriers. SEIA’s interim chief executive, Darren Van’t Hof, has emphasised the benefits of solar and storage assets in the context of fluctuating fuel prices, and indicated that drawn-out approval processes are hindering the development of clean energy amid rising national power demand. An internal SEIA assessment indicates that 457 solar and storage projects are currently at risk of political delays or cancellation while stuck in approval pipelines. Michelle Davis, lead of Wood Mackenzie’s solar division, has forecast static long-term installation growth over the next five years, as bureaucratic bottlenecks continue to restrict industry progress despite robust utility procurement intent.
Favourable policy projections also buoyed US solar equities between mid-May and early June. Leading manufacturer First Solar posted a gain of over 50% in May. UBS analyst Catherine Gordon has linked this increase in share price to falling bond yields and expected regulatory changes. The upcoming Section 232 polysilicon tariff ruling at the end of June is expected to influence future market sentiment. Despite a recent decline in the firm’s share price, its quarterly earnings guidance and the finalised tariff rules are poised to act as pivotal market catalysts.
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