US Renewable Energy Growing, Can It Overcome Barriers?

Renewable energy in the United States is experiencing strong growth, with solar energy deployment and electric vehicle sales setting records in 2023 and 2024.

Renewables also dominate new energy generation, accounting for approximately 90% of the country’s newly installed capacity in 2024. However, challenges persist that could slow this momentum.

The WRI article, “US Clean Power Development Sees Record Progress, As Well As Stronger Headwinds”, delves into this renewable energy growth, supported by data, charts, and reports highlighting the progress. The article also explores the barriers that could hinder further development and the actions needed to sustain the ongoing advancements in the nation’s clean energy sector.

America’s progress in clean energy

According to 2024 data, the United States continues to make significant strides in clean energy, with solar and battery storage breaking records, while wind energy growth has slowed. Solar capacity in 2024 surged to an estimated 39.6 gigawatts (GW), up from 27.4 GW in 2023. The US now has around 220 GW of solar power, enough to provide over 7% of the nation’s electricity. 

A report from the US Energy Information Administration says that battery storage grew nearly twice in 2024, with total installed capacity reaching almost 29 GW, and it is projected to grow another 47% in 2025.

Onshore wind added a modest 5.3 GW of new capacity in 2024, bringing the total to 153 GW at the end of 2024.

Electric vehicles reached a sales record in 2024, though the 7.3% increase from the previous year pales compared to the 49% growth between 2022 and 2023.

Key legislation, such as the CHIPs and Science Act, Bipartisan Infrastructure Law, and Inflation Reduction Act, has been instrumental in boosting the domestic manufacturing of clean energy technologies. Since August 2022, at least 160 clean energy manufacturing facilities or expansions have been announced, creating new jobs and attracting further investment.

Nuclear and geothermal energy are also gaining attention. Large energy buyers and utilities increasingly value geothermal. Geothermal can provide 24/7 power as a clean, reliable energy source, with plants or sources that can be sited in diverse geographical areas.

A start-up company, Gradient Geothermal, is tapping existing and disused oil and gas wells to harness geothermal energy.

In the meantime, giant companies like Microsoft, Amazon, and Google are investing hundreds of millions in nuclear energy as a potential renewable energy source.

In 2024, nuclear energy accounted for nearly 44% of the country’s electricity while renewables contributed 25%. However, to decarbonise America’s grid by 2035, it must add 60-70 GW of new renewable capacity each year over the next decade. In 2024, solar and wind energy contributed 45 GW of new renewable capacity, but further growth is still required to meet the ambitious goals of decarbonising the grid.

Barriers to renewable energy growth in the US

Still, challenges remain that slow down clean energy momentum in the US. These include inadequate grid capacity. In anticipation of the surge in demand, the US urgently needs to expand its grid by 57% by 2035, according to studies.

Pushbacks regarding permits and siting, particularly from local communities, cause project delays or cancellations. High interest rates remained high, increasing clean energy costs, which were passed on to end-users.

Lingering supply chain issues are causing problems in the industry and delaying projects.

Lastly, new policies from the Trump administration that aim to undo initiatives from previous administrations and encourage fossil fuel production and development are among the factors that can stall the United States’s progress on clean energy and decarbonisation targets.