While the U.S in 2025 added a record amount of renewable energy capacity, there are some early signs that the pace of deployment may be slowing down, industry research shows.
Installations of utility-scale solar, wind, and battery storage projects surpassed 50 gigawatts for the first time last year, accounting for 90% of new capacity on the grid, according to data tracked by the American Clean Power Association. But the pipeline of projects grew by just 1% each quarter on average and offtake announcements by utilities and commercial buyers fell 36% compared to 2024.
Those trends may be an early warning sign of lower renewable energy deployment toward the end of the decade, John Hensley, ACP’s senior vice president of markets and policy analysis, told Latitude Media — and it comes just as electricity demand from data centers for artificial intelligence is forecasted to more than double.
“The risk is that the pressures and challenges that the grid is going to face later in the decade could become more severe,” he said, noting that utilities are racing to keep the grid reliable and curb rising prices for ratepayers. Renewables have an advantage over other technologies, in terms of speed to market and cost, he added, but actions by the Trump administration in 2025 disrupted the industry, with potential ripple effects for deployment in the coming years.
These include tariffs, stop work orders for offshore wind farms already under construction and stalling federal reviews of permits for renewable energy projects on federal lands.
Since then, the Supreme Court has struck down Trump’s sweeping tariffs under an emergency powers law, federal judges have blocked all five of the Trump administration’s attempts to shut down offshore wind farms, and the Interior Department has started to review some utility-scale solar projects, E&E News reported, citing three agency career officials.
Hensley said despite those developments, uncertainty remains, including at DOI. While the department has cleared a handful of renewable projects to move forward, there isn’t a new review process that companies can anticipate.
“It’s not like we’re seeing systemic adjustments, where there’s a new process in place and they’re evaluating projects in a more standardized and timely way,” Hensley said.
A DOI spokesperson said that projects are proceeding in compliance with executive order 14315, signed in July 2025, that directed the department to “eliminate preferential treatment for wind and solar facilities compared to reliable, dispatchable energy sources.” As a result, all solar and wind leases, rights-of-way, construction and operation plans, grants, consultations and biological opinions must be reviewed by Interior Secretary Doug Burgum’s office.
Meanwhile, after the SCOTUS decision in February, Trump signed an executive order for a 10% global tariff on all imports, which he increased to 15% the following day. Those are in place for 150 days.
The volatility has led utilities and commercial and industrial energy buyers to search for other options, which Hensley said contributed to the drop in renewable power purchase agreements. There’s a lot of interest in restarting existing nuclear plants and behind-the-meter equipment like gas turbines and diesel engines to secure power.
That said, there’s still a lot of demand for renewable energy, and certain technologies are faring better than others. The pipelines for utility-scale solar and land-based wind projects either under construction or in advanced development grew 13% and 15%, respectively, between 2024 and 2025. Battery storage saw the strongest growth, rising 16% — predominantly in Arizona, California, and Texas.
Offshore wind, by contrast, took a huge hit. The pipeline contracted by 23%.
Projects already under construction are facing delays, with developers citing lengthy interconnection queues, regulatory barriers, supply chain constraints, and extreme weather as causes. ACP found that 59 GW of projects expected to come online from 2021 to 2025 are facing delays.
Hensley said he’s watching how the Trump administration’s focus on energy affordability — and pressure from both Republican and Democratic politicians to address it — might shift its position on renewable technologies.
MAGA loyalist Katie Miller has endorsed solar, citing polling showing Trump’s voters support the industry, as do some Republican governors including in Nevada. Department of Energy officials, including Secretary Chris Wright, have said they are open to investing in battery storage. A recent loan deal DOE did with Southern Company included storage, as well as new gas plants and grid infrastructure.
“The administration is very concerned about affordability,” Hensley said. “I don’t know how far that will go in thawing particularly President Trump’s animosity towards these technologies, but it’s got to at least be on their mind.”
