The U.S. is expected to add 63 GW of new utility-scale power capacity in 2025, a nearly 30% increase from 48.6 GW in 2024, the largest annual capacity installation since 2002, according to the U.S. Energy Information Administration’s (EIA) Preliminary Monthly Electric Generator Inventory report.

EIA’s analysis found that solar energy and battery storage will comprise 81% of the projected capacity additions, with solar accounting for over 50% of the growth.

Solar Generation

A record 30 GW utility-scale solar was added to the U.S. grid in 2024, accounting for 61% of the total capacity additions. In early 2024, had forecasted utility-scale solar additions in 2024 to be 36.4 GW, or 58% of the new power capacity additions in 2024.

The country is expected to install 32.5 GW of solar in 2025, according to EIA.

Texas and California are projected to add 11.6 GW and 2.9 GW of solar respectively, accounting for about 50% of the capacity additions. Indiana, Arizona, Michigan, Florida, and New York are projected to add over 1 GW each, collectively covering 7.8 GW of the solar capacity additions.

In the third quarter of 2024, the U.S. solar industry installed 8.6 GW capacity, marking a 21% year-over-year increase but a 13% decline from the previous quarter, according to the U.S. Solar Market Insight Q4 2024 report by Wood Mackenzie and Solar Energy Industries Association.

The country’s community solar market contributed a record-breaking 1.7 GW of capacity in 2024, a 35% increase from 2023, according to a report by Wood Mackenzie in collaboration with the Coalition for Community Solar Access.

Wind Generation

The U.S. added 5.1 GW of wind capacity in 2024, the least since 2014. EIA had forecasted wind additions to be 8.2 GW in 2024.

Wind project installations are likely to reach 7.7 GW in 2025. Texas, Wyoming, and Massachusetts are forecasted to install approximately 50% of the forecasted capacity in 2025.

Two large offshore wind projects — the Massachusetts-based 800 MW Vineyard Wind 1 and the Rhode Island-based 715 MW Revolution Wind – are set to commence operations in 2025.

Battery Storage

Utility-scale battery energy storage systems (BESS) capacity growth is projected to reach 18.2 GWh in 2025, up 77% from the record 10.3 GWh added in 2024. EIA had expected the U.S. to add 14.3 GWh BESS in 2024, which would contribute to 23% of new power capacity additions.