The U.S. renewable energy sector is expected to attract $120 billion in investment this year and could install a record amount of new capacity — up to 62 gigawatts — as developers race to meet demand growth and claim expiring tax credits for solar and wind projects, according to a pair of industry reports on Tuesday.
Renewable energy is expected to account for at least 80% of all new capacity added in the U.S. in the coming years. That said, there is a lot of uncertainty about federal approvals for solar and wind projects, as well as about how the Trump administration will apply “foreign entity of concern requirements intended to block U.S. subsidies to companies with ties to countries such as China and Russia.
That policy uncertainty — combined with grid interconnection constraints and increasing competition from gas — could chill some investor interest, ACORE and S&P Global said in their report. Meanwhile, by 2028, gas is forecast to surpass onshore wind in newly installed capacity, but continue trailing solar and storage additions through the end of the decade, the American Clean Power Association found.
Financial institutions have trillions of dollars to invest in energy infrastructure in the United States, Ray Long, president and CEO of the renewable energy industry group ACORE, told Latitude Media. But there are three main policy hurdles slowing down the pace of development.
The Departments of the Interior and War are holding up approvals of solar and wind projects on federal and private lands. Long said the Pentagon is sitting on at least 60 permits. DOI orders dating back to last year have led to the indefinite pause in reviews of at least 20 major projects. (A federal judge last week ordered DOI to stop enforcing the orders, but the Trump administration could appeal the decision.)
Meanwhile, the Treasury Department hasn’t issued guidance on what constitutes a “foreign-influenced” entity — a designation that could disqualify certain solar, wind, and battery projects from claiming tax credits. The lack of clarity has given banks pause, because a violation of those rules at any point over a 10-year recapture period can result in a penalty equal to 20% of the entire tax break for a project. The FEOC rules apply to projects that begin construction this year and beyond.
Long said Congress also needs to pass permitting reform, which could help speed up the construction of new generation and long-haul transmission lines.
A bipartisan group of senators is negotiating a package that could limit the window to file a lawsuit against a federal energy permit, grant FERC more authority to approve interstate transmission lines deemed in the national interest, and block the administration from canceling already-approved permits. While these moves would give both renewable energy and fossil fuel developers more certainty, it’s unclear whether lawmakers can reach a deal this year.
Beyond policy, renewable energy projects are also facing increasing local opposition. There was a large uptick in cases against battery storage between 2023 and 2025, particularly in California, New York, and Texas, according to ACORE and S&P Global. Safety is a top concern for local residents, followed by environmental impacts and land use.
The report forecasts investment in storage to remain flat in 2026 compared to last year, at around $22 billion, but to pick up in the coming years. ACP also forecasts that the U.S. will add nearly 80 GW of storage capacity by 2030.
