A recent analysis by the SUN DAY Campaign, based on newly released data from the Federal Energy Regulatory Commission (FERC) and the U.S. Energy Information Administration (EIA), reveals that renewable energy sources such as solar, wind, hydropower, biomass, and geothermal now comprise over 30% of the total U.S. utility-scale electrical generating capacity. Additionally, renewable energy contributed 25% of the nation’s electricity during the first seven months of 2024.
Solar Energy Dominates U.S. Capacity Growth in 2024
According to FERC’s latest “Energy Infrastructure Update,” solar energy is leading the growth in new generating capacity, accounting for 69% of all new capacity in July 2024 and 77% for the first seven months of the year. Wind energy provided the majority of the remaining new capacity, contributing 11.7%. Solar has now been the top source of new generating capacity for 11 consecutive months, with wind frequently taking second place.
In total, 40 solar units amounting to 1,291 MW were added in July, along with two wind units contributing 141 MW. Combined, solar and wind made up 76.1% of all new generating capacity for the month, while natural gas accounted for the remaining 450 MW. Year-to-date, renewables have contributed nearly 90% of all new capacity, with solar adding 14,949 MW and wind 2,270 MW.
Renewables Continue to Outpace Fossil Fuels
The steady rise of renewable energy is underscored by solar’s remarkable growth. Solar capacity additions through July 2024 were 81.2% higher than in the same period in 2023, while new natural gas capacity was only 9.6% of last year’s total. Other renewables, like hydropower and wind, saw slight declines in new capacity compared to 2023, but overall renewable energy sources are rapidly outpacing fossil fuels.
Solar now holds 9.1% of total U.S. utility-scale generating capacity, moving it to fourth place behind natural gas (43.3%), coal (15.7%), and wind (11.8%). With small-scale solar factored in, solar and wind combined make up nearly 21% of U.S. generating capacity. This growth trend positions solar to become the second-largest source of U.S. generating capacity by 2027, potentially surpassing coal and wind.
Solar and Wind Driving U.S. Renewable Energy Growth
FERC’s projections suggest that by 2027, solar could account for 15% of the nation’s utility-scale generating capacity. Wind is expected to grow to 12.8%, while other renewables like hydropower, biomass, and geothermal will also see modest increases. In contrast, coal, natural gas, and oil are expected to experience significant declines in capacity.
Furthermore, if small-scale solar installations are included, the total U.S. renewable energy capacity is likely to exceed natural gas by mid-2027. Current data indicates that solar and wind are already reshaping the U.S. energy landscape, with renewables potentially making up 40% of the nation’s total installed capacity within the next three years.
Solar Energy Leads U.S. Power Generation Growth in 2024
In its latest “Electric Power Monthly” report, the EIA highlights that solar energy remains the fastest-growing source of U.S. electrical generation. Utility-scale solar increased by 29.7% in the first seven months of 2024 compared to the previous year, while small-scale solar grew by 16.8%. Combined, solar provided 7.4% of the country’s electricity in July 2024 and 7.0% for the year-to-date period.
Renewable energy sources collectively generated 25% of U.S. electricity in the first seven months of 2024, up from 23.9% during the same period in 2023. Wind and solar alone accounted for 17.8% of the nation’s electrical output, demonstrating their growing role in meeting U.S. energy demands.
Future Growth of Renewables and Potential Impact
As renewable energy, particularly solar, continues its rapid growth, future developments may depend on the outcome of upcoming U.S. elections. Policies supporting renewable energy expansion could accelerate this trend, positioning solar and wind to further dominate the U.S. energy market.
Ken Bossong, executive director of the SUN DAY Campaign, commented: “Renewable energy sources, led by solar, continue to expand their share of U.S. generating capacity and electrical production. However, future growth may depend heavily on the results of the November elections.”
With renewables on track to surpass fossil fuels in the near future, the U.S. energy landscape is rapidly evolving, driven by the increasing adoption of solar and wind power.
