Renewable energy continues to be a driving force in the growth of US power generation, with solar capacity additions leading the way. According to the latest Short-Term Energy Outlook by the US Energy Information Administration (EIA), it is projected that 26 gigawatts (GW) of solar capacity will be added to the US electric power sector in 2025, followed by 22 GW in 2026. This marks a significant increase from the record-breaking 37 GW of solar power capacity added in 2024.
In addition to solar, the EIA forecasts an increase in wind capacity additions, with around 8 GW expected in 2025 and 9 GW in 2026. This growth in renewable energy sources is set to support most of the growth in US electric power generation, which is anticipated to rise by 2% in 2025 and 1% in 2026. In 2024, the US electric power sector produced a total of 4,155 billion kilowatt-hours (kWh) of electricity, a 3% increase from the previous year.
While renewable energy sources are on the rise, natural gas remains the largest source of US power generation. In 2024, natural gas-fired power plants generated 1,767 billion kWh, accounting for around 42% of the electricity mix. The EIA projects a slight decline in natural gas generation in 2025 and 2026.
Coal retirements are also expected to accelerate, with 11 GW of coal generating capacity set to be removed from the US electricity sector in 2025 and an additional 4 GW in 2026. This follows a lower rate of coal retirements in 2024, which saw only 3 GW of capacity removed.
In terms of other energy sources, nuclear power generation is forecasted to grow by 2% in 2025 and 1% in 2026, while coal electricity generation is expected to remain relatively unchanged at around 640 billion kWh in both years.
Overall, the EIA’s projections highlight the continued shift towards renewable energy sources in the US power generation mix. With solar and wind capacity additions leading the way, the future of US power generation looks to be increasingly clean and sustainable.
