U.S. Set For Record Power Additions In 2025 As Solar Leads With Over Half Of New Capacity

U.S. developers have reported that solar energy will contribute more than half of the new electric generating capacity coming online this year, marking a major milestone for clean energy growth. In the first half of 2025, developers added 12 gigawatts (GW) of new utility-scale solar capacity, and another 21 GW is expected to be added in the second half of the year. If these plans are realized, solar will represent over 32 GW out of the 64 GW that developers plan to bring online in 2025. The rest of the new capacity additions will largely come from battery storage, wind, and natural gas power plants.

If all 64 GW of planned projects are completed, it would set a new record for annual capacity additions in the United States. The last record was set in 2002, when 58 GW was added, with nearly all of it fueled by natural gas. While natural gas capacity has continued to grow each year since then, renewable technologies like wind, solar, and battery storage have become dominant drivers of new additions. In fact, both solar photovoltaic and battery storage are set to add more capacity in 2025 than in any previous year, largely due to strong growth in Texas.

Texas has emerged as a leader in solar capacity development. So far in 2025, 3.2 GW of solar capacity was added in the state, accounting for 27% of the total solar additions nationwide. Developers are planning to add another 9.7 GW of solar in Texas during the second half of the year. This surge has pushed Texas ahead of California, making it the state with the largest utility-scale solar capacity in the country.

Battery storage has also played a significant role in new capacity. It accounted for the second-largest share of additions in the first half of the year, totaling 5.9 GW or 26% of new capacity. Nearly half of this was installed in Arizona and California. Texas developers are expected to add about 7 GW of battery storage capacity in 2025, most of which will be completed later in the year. The rise of battery storage alongside solar highlights the shift toward renewable energy backed by flexible grid support.

On the retirement side, relatively little generating capacity was removed from service in the first half of 2025. Only 2.0 GW of the planned 8.7 GW in retirements was completed. Compared with the original retirement schedules announced earlier this year, more than 3.6 GW of retirements have been delayed or canceled. These include the coal-fired Units 1 and 2 of Brandon Shores in Maryland, the oil-fired Units 3 and 4 of Herbert A Wagner, also in Maryland, and the natural gas-fired Units 1, 2, and 3 of the V H Braunig plant in Texas.

If retirement intentions proceed as currently reported, coal-fired plants will account for 71% of retired capacity in 2025, while natural gas will account for about 19%. This mix of record-setting additions and relatively low retirements signals a strong year of growth for the U.S. power sector, with solar and storage clearly taking the lead in shaping the country’s future energy landscape.