U.S. Expected to Add 63 Gigawatts of Generating Capacity in 2025: EIA

The U.S. power grid is expected to add 63 gigawatts (GW) of new utility scale electric generating capacity during 2025, about 30 percent higher compared to the 48.6 GW of capacity installed during 2024, according to an Feb. 24 report published by the U.S. Energy Information Administration. The increase in new utility scale electric generating capacity is expected to be driven by additions to solar and battery storage, with solar accounting for more than 50 percent of the increase.

Solar is the fastest-growing renewable source due to larger capacity additions and favorable tax credits policies. U.S. solar capacity has risen significantly since 2010, with the exemption of 2022 when solar additions fell by 23 percent year on year in 2022 due to supply chain interruptions and other COVID-19 associated challenges. Solar technological advancements have been incentivized by the previous administration. During September 2024, the U.S. Energy Department announced $40 million to bolster solar manufacturing, expand photovoltaic recycling, and foster new markets for solar technologies. The chosen projects will take full advantage of the environmental benefit of solar energy technologies by elevating PV system equipment lifespan and work to enable material retrieval once the equipment is decommissioned.

The agency expects generators to add a record 32.5 GW of new utility scale solar capacity during 2025, up from the previous record high of 30 GW during 2024. The increase in solar capacity is expected to be driven by additions in Texas (11.6 GW) and California (2.9 GW). Capacity growth from battery storage is projected to hit a record high of 18.2 GW during 2025. During 2024, battery storage hit a record high when providers added 10.3 GW of new battery storage capacity to the power grid. Battery storage is helping operators to balance demand and supply and improve grid stability, amid higher renewable energy growth.

Wind capacity is expected to increase by 7.7 GW during 2024, up from the 5.1 GW added capacity during 2024. Wyoming, Texas and Massachusetts will account for nearly 50 percent of 2025 wind capacity additions. New U.S. natural gas fired capacity is projected by the agency to be 4.4 GW during 2025.