Renewable Energy to Dominate U.S. Grid Additions in 2025
Renewable energy technologies—primarily solar, wind, and battery storage—are projected to comprise 99% of all new electricity grid installations in the United States in 2025, driven by lower costs and rapid deployment timelines rather than ideological factors[1]. Texas is expected to lead the nation, adding nearly 10 GW of new solar capacity this year, marking the largest annual growth of any U.S. energy technology in over two decades[1].
U.S. Utility-Scale Solar Expansion Sets New Record
Developers added 12 GW of new utility-scale solar capacity in the first half of 2025 and plan to add another 21 GW by year-end, meaning solar will account for over half of the 64 GW of new generating capacity expected in 2025[3]. Battery storage, wind, and natural gas power plants make up nearly all remaining additions, underscoring solar’s central role in this year’s grid growth[3].
Global Push to Triple Renewable Capacity by 2030 Gains Momentum
Governors in Northeast Brazil signed a declaration supporting the Global Renewables Alliance’s goal to triple global renewable energy capacity to at least 11,000 GW by 2030, a target endorsed at COP28 and now being incorporated into national climate plans worldwide[5]. More than 200 organizations have joined the call to embed ambitious renewable targets into national policies, accelerating the global energy transition[5].
Data Center and Industrial Growth Drives U.S. Electricity Demand Surge
Electricity generation in the U.S. is forecast to grow by 2.3% in 2025 and 3.0% in 2026, exceeding previous expectations due to soaring demand from data centers and industrial sectors[4]. Utility-scale solar will expand the most, generating 33% more electricity than in 2024, and new solar projects will account for more than half of new capacity this year[4].
U.S. Biodiesel and Renewable Diesel Imports Drop After Tax Credit Changes
Imports of biodiesel and renewable diesel into the United States fell sharply in 2025 following changes to federal tax credits, impacting supply chains and the domestic renewable fuels market[3]. This shift may influence future investment decisions in U.S. biofuel infrastructure[3].