Arizona ranks fourth nationally for solar installations despite federal permit concerns

 

Arizona ranked fourth in the nation for solar installations in the third quarter, despite concern among U.S. solar companies about a federal policy that they claim could stall project permits, according to a recent report.

Arizona added 11,060 megawatts of solar capacity in Q3, equating to enough energy to power 1.6 million homes, according to the report. California ranked No. 1 in the nation for overall solar capacity during the third quarter, followed by Texas and Florida, according to the U.S. Solar Market Insight report released Dec. 9 by the Solar Energy Industries Association and Wood Mackenzie.

The U.S. solar industry installed 11.7 gigawatts of new capacity in Q3, marking a 20% increase over the prior year quarter.

More than $2.3 billion was invested in solar projects in Arizona during 2025. With the opening of new solar manufacturing facilities — including Tempe-based First Solar Inc.’s plant in Louisiana — the U.S. added 17.7 gigawatts of new module manufacturing capacity this year, according to the report.

New York-based Corning Inc. also began ingot and solar wafer production at its Michigan plant during Q3. The facility is co-located with Corning’s polysilicon plant in Hemlock, Michigan and establishes the U.S.’s first domestic solar supply chain, according to the company.

“We expect 250 gigawatts of solar to be installed from 2025 to 2030. But the U.S. solar industry has more potential,” Michelle Davis, head of solar research at Wood Mackenzie and lead author of the report, said in a statement. “Wood Mackenzie is tracking substantial increases in power demand across the nation. The solar industry would be well positioned to meet more of this new demand if existing constraints were alleviated, presenting upside to our forecast.”

Solar companies express concern about federal permit reviews

While the national solar industry saw an uptick in new capacity in Q3, some 143 solar companies — including seven in Arizona — expressed concern about a July 15 memo from the U.S. Secretary of Interior that calls for additional federal reviews of wind and solar development projects.

The policy for additional reviews as outlined in the DOI’s July memo will create “burdensome red tape” and “significantly delay or cancel deployment of much needed solar energy,” the companies wrote in a Dec. 7 letter to the U.S. Senate and the U.S. House of Representatives.

What’s more, the July memo from Interior Secretary Doug Burgum required his personal sign-off for dozens of kinds of solar permits, affecting projects on federal and private lands involving federal resources or consultation, Reuters reported.

“On its face, the July 15th memo requires elevated review for solar energy permits,” the companies wrote in the letter to U.S. Congress. “However, federal agencies are implementing this directive in a way that amounts to a nearly complete moratorium on permitting for any project in which the Department of Interior may play a role, on both federal and private land, no matter how minor.”

The companies urged Congress to either revoke the memo or work with the DOI to prevent unnecessary delays in energy project development, while keeping “fairness and certainty at the center of permitting negotiations.”

“Businesses need certainty in order to continue making investments in the United States to build out much-needed energy projects,” the companies wrote. “Certainty must include a review process that does not discriminate by energy source. We urge Congress to keep fairness and certainty at the center of permitting negotiations.”