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U.S. Set for Record Power Capacity Additions in 2025, Led by Solar and Storage

A shift in federal incentives introduces near-term uncertainty beyond 2025.

An aerial view shows rows of solar panels at a solar farm in Anson, Texas, U.S., April 23, 2025. REUTERS/Daniel Cole/File Photo

Overview

  • Developers plan 64 GW of new generating capacity this year, which would surpass the 58 GW record set in 2002, according to the EIA.
  • Through May, solar and wind accounted for about 91% of new capacity, and for 2025 the EIA forecasts 33.3 GW of solar, 18.3 GW of battery storage, 7.8 GW of wind, and 4.7 GW of natural gas.
  • Utility-scale solar additions totaled 12 GW in the first half of 2025, with another 21 GW slated for the second half, the EIA reports.
  • Texas leads the buildout, contributing over a quarter of solar added so far in 2025 and targeting 9.7 GW more solar in the second half, with 7.0 GW of storage expected statewide this year.
  • Planned fossil retirements for 2025 have slowed, with about 3.6 GW of the 8.7 GW slated now delayed or canceled, including units at Brandon Shores and Herbert A. Wagner in Maryland and V.H. Braunig in Texas.