EIA Forecasts 21% Solar Generation Growth in 2026, 18% in 2027
The U.S. Energy Information Administration (EIA) forecasts a significant increase in solar energy production over the next two years as rising electricity demand is driven by data center development and manufacturing growth. Total U.S. electricity consumption is expected to grow by 2% annually through 2027, reaching record levels of 4,211 billion kWh. The commercial sector will lead this increase with projected annual sales rises of 3.3% in 2026 and 2.7% in 2027. Solar generation is forecast to grow by 21% in 2026 and another 18% in 2027, while wind power will see more modest gains of 7% and 5%. Natural gas production is expected to rise slightly each year, whereas coal use declines sharply. The growth in solar generation is concentrated within the Electric Reliability Council of Texas (ERCOT) and Midcontinent Independent System Operator (MISO), with ERCOT adding nearly double MISO’s projected output. The PJM Interconnection market accounts for almost half of U.S. electricity generation growth, driven by natural gas this year and a mix of natural gas, coal, and wind in 2027.
Topics: EIA forecast Electricity consumption Solar energy Wind generation