Report: U.S. Renewable Power Growth Sets Record in 2025, Outlook Cloudy

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Written by Danny Levin, Deputy Editor for IIR News (Sugar Land, Texas)

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Summary

Wind, solar and battery capacity grew at a record rate in 2025, adding 50 GW. But federal policy instability around renewable energy has led to a drop in power purchase agreements, creating doubts that this level of growth can continue.

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U.S. Solar, Battery Storage and Wind Add 50 GW in 2025

U.S. wind, solar and battery capacities grew at a record pace in 2025, according to the American Clean Power Association (ACP). The three energy sources added a total of 50,344 megawatts (MW)/50.3 gigawatts (GW) in 2025, up from 48.7 GW in 2024. This marks the first time annual deployment reached 50 GW.

The sources added 18.6 GW in the fourth quarter alone.

Battery storage led the way in 2025, with installations 41% higher than in 2024.

ACP Chief Policy Officer JC Sandberg said in a report summary that a "consistent market and policy environment" powered this year's projects, but the future outlook remains uncertain.

Headwinds to Future Capacity Growth

The ACP notes power purchase agreements declined 27% in 2025 year-over-year, which indicates lower clean power deployment in 2028-2030.

Power demand is skyrocketing as data centers come online across the nation, but "many buyers delayed decisions in the second half of the year, awaiting clarity on federal policy and tax credit eligibility rules."

"Current policy instability is beginning to impact investor confidence and negatively affect project timelines," Sandberg said.

The One Big Beautiful Bill Act eliminated tax credits for wind and solar facilities placed in service after December 31, 2027, unless construction begins by July 4, 2026.

Following its passage, the Treasury Department issued guidance on transferable tax credits and foreign entity-of-concern rules. For more information, see August 19, 2025, article - Some Relief for Wind and Solar as New IRS Rules Appear Workable.

Last December, the administration issued stop-work orders for five major offshore wind projects--aiming to halt construction while citing natural security risks--but federal courts have since issued temporary injunctions allowing the projects to proceed.

Despite any negative long-term sentiment, the U.S. Energy Information Administration recently estimated a total of 86 GW of new utility-scale generation capacity will come online this year--largely from renewable energy.

At 51% (43.4 GW), solar leads the way, followed by battery energy storage systems (BESS) at 28% (24.3 GW), and wind at 14% (11.8 GW). That is up significantly from 2025's 53 GW of new capacity.

For more information, see February 27, 2026, article - EIA Sees U.S. Hitting Record Grid Capacity Additions in 2026, Adding 86 GW.

Industrial Info's Global Market Intelligence (GMI) Project Database shows $41 billion worth of U.S. solar projects under construction, $28.5 billion worth of offshore and onshore wind projects, and $23 billion worth of projects involving battery energy storage systems.

Cypress Creek Renewables' Hanson solar-plus-storage project in Coleman County, Texas is designed to provide 396 MW of solar power and 100 MW via a BESS facility. The project is expected to reach commercial operation in mid-2027 and will deliver power to the ERCOT grid via a PPA in place with Meta Platforms Incorporated.

Also underway is AES Corporation's wind-plus-BESS project in Joseph City, Arizona, about 80 miles west of Flagstaff. The West Camp Windfarm will provide generation of at least around 400 MW, coupled with a 250-MW BESS unit. Power could begin to flow in 2027.

Last week, AES agreed to be acquired by a BlackRock subsidiary-led consortium in a deal that would make it a private company. The transaction is expected to close in late 2026 or early 2027 and will improve AES' access to capital. For more information, see March 9, 2026, article - AES Nears Acquisition with Strong Slate of Renewable Projects.

Subscribers can click here to access detailed information on the two aforementioned projects as well as the five offshore wind projects that President Donald Trump has tried to halt.

Key Takeaways

• The American Clean Power Association reports the U.S. added a record 50 GW of wind, solar and BESS power to the grid in 2025.
• But unstable federal policy around renewable energy is causing a dip in power purchase agreements, which could inhibit future deployment growth.
• IIR data indicates tens of billions' worth of solar, BESS and wind power-generation projects in the U.S. are under construction.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).