The US added 24.7GW of new electric power generating capacity to the grid in 2022 with almost two-thirds solar and wind, down 11.6% from a year earlier, led by robust activity in California, southeastern states, and Texas, according to a new report from S&P Global Market Intelligence.

Solar led all capacity additions with 9.3GW (37.6%), followed by wind (27.1%), natural gas (25.9%), and other technologies including biomass, fuel oil, geothermal, and hydro (9.4%). Wind was in the top spot the previous year with about 11.4GW.

The analytics firm noted that a combination of clean energy policies, long-term tax incentives, and lower costs have propelled solar energy to being the most attractive source of new power generation in the US, and globally.

“Compared to wind, solar is more accessible to residential users, generates less public opposition than wind farms, and requires less land per unit of electricity produced, making it easier to permit,” it said in an email to Recharge.

“Utility-scale solar PV is the cheapest renewable energy option and its low maintenance costs, and flexible installation options provide unique opportunities to add generation across the country,” the firm added.

ERCOT, which operates the main Texas grid and a competitive bulk power market for 90% of the state’s electric load, led all US balancing authorities last year with 6.05GW of capacity additions led by solar (43.2%), wind, and natural gas.

The US southeast and west minus California, which do not form part of a single independent or regional electric power transmission system operator, was second with 4.83GW of new capacity, roughly 60% solar.

The decline in 2022 power additions was expected as developers faced a slew of challenges including labour shortages, logistics issues, 40-year high inflation, rising interest rates, and uneven enforcement of US trade policies that left projects without solar components and modules.

Analysts expect these challenges will continue well into this year. The landmark US climate law signed by President Joe Biden last August will help stoke national demand for clean energy, but the potential for big gains will be limited by the uncertain macroeconomic outlook.