U.S. Clean Energy Installations Hit Record 11.7 GW in Q3, But Policy Uncertainty Clouds Outlook

The American Clean Power Association (ACP) has reported record growth in the U.S. clean energy sector during the third quarter of 2025, with developers installing 11.7 gigawatts (GW) of new utility-scale solar, wind, and energy storage capacity. The additions represent a 14% increase compared to the same quarter last year and are enough to power more than 1.6 million homes. Battery storage installation alone reached 4.7 GW—surpassing previous quarterly records.

While the sector continues to demonstrate strong near-term momentum, the ACP warned that policy instability threatens long-term deployment and investment.

“The third quarter’s record results mask an unstable policy environment that is threatening our ability to meet our future energy needs,” said ACP CEO Jason Grumet. “The policy chaos at the federal level has seeped into every part of project timelines, stalling growth precisely when we need to meet demand and keep energy prices affordable for American families and businesses.”

Power Purchase Agreements Decline Despite High Demand

Despite record project completions, forward-looking indicators show a slowdown. Power purchase agreements (PPAs) fell 31% year-over-year in Q3, contributing to a 38% decline in total offtake activity so far in 2025. ACP noted that buyers paused negotiations as they awaited clarity on federal tax credit guidance and compliance rules for foreign-entity-of-concern restrictions. The result was minimal pipeline growth—less than 1% quarter-over-quarter.

Grumet said rising electricity demand driven by artificial intelligence, data centers, and reshoring of manufacturing is expected to push national power needs to historic highs in 2026. “With swift policy action, this demand can be met with domestic clean energy, supporting U.S. competitiveness in the race for these new technologies,” he added.

Key Findings from ACP’s Q3 2025 Market Report

• Record Deployment: The 11,695 MW installed marks the strongest Q3 on record. Land-based wind capacity more than doubled, increasing 131% compared to Q3 2024.
• Pipeline Growth Slows: The national clean energy pipeline reached an all-time high of 186,185 MW, up 9% year-over-year, but expanded only 1% since the first quarter of 2025.
• Strong Year-to-Date Performance: Total installations reached 30.9 GW through September, exceeding the pace set during 2024—the previous record year.
• Offtake Agreements Down: Clean energy contracting fell sharply, with announcements during the first three quarters down 38% compared to 2024.
• States Poised to Expand Capacity: Eleven states—including Massachusetts, Michigan, New York, and Tennessee—have enough pipeline capacity to more than double current operational portfolios.
• Offshore Wind Stalls: No offshore wind capacity was added in Q3. The sector is expected to contract in Q4 following a petition from Invenergy to cancel its 2,400 MW Leading Light Wind offshore renewable energy certificate agreement with New Jersey regulators.