Renewables to Account for 99% of New U.S. Grid Installations in 2025
Renewable energy technologies—including solar, wind, and batteries—are projected to make up 99% of all new U.S. electricity grid installations this year, driven by their cost competitiveness and rapid deployment timelines compared to fossil fuels.[1] Texas is expected to lead in new solar capacity additions, adding nearly 10 gigawatts in 2025.[1]
U.S. Utility-Scale Solar Generation to Grow by 33% in 2025
Utility-scale solar in the United States is forecast to generate 33% more electricity in 2025 than in 2024, accounting for over half of the new generating capacity coming online this year.[2] Wind, hydropower, and nuclear are also expected to see generation increases, with wind up 4% and hydropower up 2% year-over-year.[2]
Washington State Advances Toward Coal-Free, Carbon-Neutral Electricity
Southwest Washington is accelerating its renewable energy transition through large-scale wind, solar, and hydro projects, in line with the Clean Energy Transformation Act that mandates utilities eliminate coal-fired electricity by 2025 and reach carbon neutrality by 2030.[5] The region’s wind farms now provide substantial clean power and economic benefits to rural communities.[5]
New IRS Guidance Alters Construction Timing for Wind and Solar Tax Credits
IRS Notice 2025-42, issued under the OBBBA, changes qualification rules for wind and solar tax credits, applying to projects that did not begin construction before September 2, 2025.[7] This regulatory update is expected to impact project development timelines and financing in the coming years.[7]
U.S. Renewable Subsidy Uncertainty and Tariff Swings Create Market Turbulence
The U.S. is rapidly reducing renewable energy subsidies and imposing unpredictable tariffs, causing uncertainty for new wind and solar projects and complicating financing for projects beyond 2026.[3] Industry leaders are closely watching regulatory developments as most projects currently moving forward were initiated before these policy changes.[3]