Key Takeaway: Solar has reached a historic milestone, surpassing coal in U.S. electricity generation as rising demand and record investment accelerate the transition to renewable energy. As innovation and competition intensify, companies should prioritize strong intellectual property strategies to protect new technologies and reduce infringement risk.
Solar power generated more electricity than coal in the United States for the first time in May 2026. According to an analysis by Ember using U.S. Energy Information Administration (EIA) data, solar supplied 12.8% of U.S. electricity generation during the month, while coal accounted for 12.2%. Rapidly improving solar technology, falling costs, and continued investment have transformed solar into a larger component of the nation’s electric grid.
According to the Solar Energy Industries Association (SEIA) and Wood Mackenzie, the United States installed 43.2 gigawatts of new solar capacity during 2025. Solar and energy storage accounted for 79% of all new capacity additions. Solar has now been the nation’s largest source of new generating capacity for five consecutive years.
The viability of solar comes at a critical time. The U.S. Energy Information Administration forecasts that electricity demand will reach record highs in 2026 and 2027, fueled by rapid growth in artificial intelligence, data centers, and advanced manufacturing. Meeting this growing demand will require significant deployment of new generating capacity, with solar expected to play an increasingly important role.
At the same time, more money than ever is flowing towards solar companies. Across the clean energy sector broadly, private equity deal value reached a record $63.8 billion in Q1 2026. Meanwhile, solar companies alone raised $11.1 billion through a mix of debt, venture capital, and public market financing.
As the solar industry continues to expand, companies should develop comprehensive intellectual property strategies to protect their innovations and strengthen their competitive position. Companies should also regularly evaluate potential IP risks by conducting patent landscape and infringement analyses before launching new products or entering new markets. Taking these steps early can help identify potential infringement issues, secure critical investment funds, guide research and development efforts, and reduce the risk of costly disputes down the road.
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