2025 U.S. Energy Expansion: Solar & Battery Surge Despite Policy Shifts
The U.S. energy sector is on track for significant growth in 2025, with 63 gigawatts (GW) of new utility-scale electric-generating capacity expected—nearly 30% more than in 2024, according to the latest Energy Information Administration (EIA) report. This marks the largest annual increase since 2002. Solar and battery storage will dominate, accounting for 81% of total capacity additions, while wind will see moderate growth and natural gas remains a key part of the mix.
☀️ Solar: Leading the Energy Transition
In 2024, a record 30 GW of utility-scale solar was added to the U.S. grid, making up 61% of total capacity additions. This trend will continue in 2025, with 32.5 GW of new solar capacity expected. The largest contributions will come from:
Texas (11.6 GW) and California (2.9 GW), accounting for nearly half of new additions.
Indiana, Arizona, Michigan, Florida, and New York, each adding over 1 GW of new capacity, collectively totaling 7.8 GW.
🌬️ Wind: Steady Growth with Offshore Uncertainty
Wind energy additions will total 7.7 GW in 2025, an increase from 5.1 GW in 2024, which marked the smallest annual wind expansion since 2014. Key developments include:
Texas, Wyoming, and Massachusetts leading onshore wind growth.
Two major offshore wind farms expected to begin operations:
Vineyard Wind 1 (800 MW) in Massachusetts.
Revolution Wind (715 MW) in Rhode Island.
The offshore wind sector faces policy uncertainty due to Trump’s executive order halting new leases, which could impact future growth.
🔋 Battery Storage: Record Expansion to Support Renewables
Battery storage plays a crucial role in stabilizing the grid, storing excess solar and wind energy for later use. Unlike traditional energy sources, storage systems do not generate electricity but instead optimize renewable integration, helping to balance supply and demand.
A record 18.2 GW of new battery storage capacity is expected in 2025.
This nearly doubles the 10.3 GW added in 2024, which was itself a record.
Growth in storage highlights its increasing importance in ensuring grid stability as renewables expand.
🔥 Natural Gas: New Capacity & Coal Replacements
Although renewables are growing rapidly, natural gas remains a key part of the U.S. energy mix. In 2025, 4.4 GW of new natural gas capacity is expected, with:
50% from simple-cycle combustion turbines.
36% from combined-cycle power plants.
Utah, Louisiana, Nebraska, North Dakota, and Tennessee leading new developments.
The Intermountain Power Project (840 MW) in Utah will replace 1,800 MW of retiring coal capacity, marking a significant shift in energy sources.
Outlook: Policy Shifts and Investment Trends
Despite policy shifts, the U.S. is on track for a record-breaking year in renewable energy expansion, with solar and battery storage driving the majority of new capacity additions. However, uncertainties remain. National Grid’s decision to exit U.S. renewables underscores shifting investment priorities, while Trump’s executive order pausing new offshore wind leases raises concerns about long-term wind sector growth. As energy markets adjust to changing policies, the pace of future renewable expansion will depend not just on project pipelines but also on evolving investor confidence and regulatory direction.
