Solar Electric Power NAICS 221114

Mar 7, 2025 - Solar, Battery Storage to Lead 2025 Electricity Generation Growth

• US electricity generation capacity additions in 2025 are expected to be led by solar and battery storage projects, according to the US Energy Information Administration (EIA). The US is projected to add 63 gigawatts (GW) of generating capacity in 2025, led by utility-scale solar with 32.5 GW, followed by battery storage (18.2 GW), wind (7.7 GW), and natural gas (4.4 GW). Additions in Texas (11.6 GW) and California (2.9 GW) will account for nearly half of the solar capacity additions in 2025. Other states that are expected to have significant upticks in solar additions in 2025 include Arizona, Florida, Indiana, Michigan, and New York.
• The state of the renewable energy sector and the fate of the Biden-era Inflation Reduction Act (IRA) were topics of discussion in late February at the American Council on Renewable Energy’s (ACORE) annual forum in late February, according to Utility Dive. Renewable energy tax credits under the IRA are expected to be a target for cuts as the Republican-led Congress drafts a new budget. However, some attendees of the ACORE conference suggested that the jobs and other economic benefits stemming from the IRA are being enjoyed in red states. ACORE’s President and CEO said he, like Trump, emphasizes bringing down energy costs for consumers and hopes to work with the administration on an all-of-the-above energy strategy, noting that solar and wind are currently the cheapest energy sources.

• As the Trump administration and its allies in Congress aim to repeal or pare back the green energy incentives in the Inflation Reduction Act (IRA), Republican congressional districts could have the most to lose, according to The New York Times. Since it was passed in 2022, private firms incentivized by the IRA have announced $165.8 billion in manufacturing investments to build solar panels, electric vehicles, wind turbines, and other products related to renewable energy, according to a report by research firm Atlas Public Policy. About 80% of that spending has occurred in Republican districts, creating a boon for jobs and economic activity. Soon after being sworn in, President Trump signed an executive order freezing funding for projects under the IRA and the bipartisan Infrastructure Investment and Jobs Act. Two federal judges ordered the Trump administration to unfreeze the funds, which Congress authorized. However, The New York Times reported that some agencies may still be blocking funding for some projects, including six large-scale solar projects in Nevada.
• According to Utility Dive, two recent reports suggest that repealing the Inflation Reduction Act (IRA) tax incentives would increase electricity prices. A report prepared by NERA Economic Consulting for the Clean Energy Buyers Association estimated that full repeal of the IRA’s investment and tax credits could increase the US average delivered electricity price by 10% by 2029. If the IRA’s incentives were to be clawed back, total power system generation costs could increase 14% by 2035, with most impacts felt by middle- and lower-income households, according to a separate report generated by The Brattle Group for ConservAmerica, a right-leaning environmental advocacy organization.