The U.S. solar power industry added 11.4 gigawatts of capacity in the second quarter, 43% more than in the first quarter and now has enough to supply 50 million homes, according to a report by the Solar Energy Industries Association and Wood Mackenzie.

Utility-scale solar accounted for 9.6 gigawatts of the capacity added in the second quarter, the SEIA said Thursday.

"The strong quarter reflects developers moving quickly to bring projects online ahead of the July 2026 safe harbor deadline for tax credit eligibility, while a substantial pipeline of projects will continue supporting solar growth in the years ahead," the association said.

Residential installations fell 10% from the first quarter to 995 megawatts, according to the report. The residential market is still facing challenges after the residential solar tax credit expired at the end of last year, although that market is forecast to return to growth in 2027, the SEIA said.

Current solar capacity in the U.S. stands at 299.4 gigawatts. The report forecasts that the solar market will double over the next five years as the U.S. consumes increasing amounts of electricity.

In its latest Short Term Energy Outlook, the U.S. Energy Information Administration predicts record electricity generation and consumption this year and in 2027, driven by data center development and higher manufacturing activity in the commercial and industrial sectors. Electricity sales are expected to rise around 2% this year and next.

"As wind and utility-scale solar capacity continues to be added to the grid, we expect solar generation to grow by 21% in 2026 and by 18% in 2027, while wind generation grows 7% in 2026 and 5% in 2027," the EIA said.

Solar energy is forecast to account for 8% of U.S. power generation this year, rising to 9% in 2027, according to the EIA, and wind's share is seen rising to 12% from 11%. Both gain at the expense of coal which is projected to fall to 14% in 2027 from 16% this year, while natural gas remains the main source of power generation at 40%.