Comprehensive Snapshot for U.S. Renewable Energy Market Research Report, Including Zone and Segment Analysis in Brief.
Industry: Energy & Utilities
Published Date: May-2025
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 120
Report ID: PMRREP35264
The U.S. renewable energy market size is estimated to rise from 481.5 Gigawatt in 2025 to 893.2 Gigawatt in 2032 in terms of installed base. In the forecast period between 2025 and 2032, the market is projected to witness a CAGR of 12.7%.
The industry is propelled by favorable government norms such as subsidies, grants, and tax credits to lower the upfront cost of renewable energy installations, finds Persistence Market Research. The U.S. Department of Agriculture (USDA), launched grants scheme in March 2023 with an objective to help small businesses and agricultural producers in rural areas to invest in renewable energy systems and incorporate energy-efficient enhancements.
Key Industry Highlights
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Market Attribute |
Key Insights |
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U.S. Renewable Energy Market Size (2025E) |
481.5 Gigawatt |
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Market Value Forecast (2032F) |
893.2 Gigawatt |
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Projected Growth (CAGR 2025 to 2032) |
12.7% |
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Historical Market Growth (CAGR 2019 to 2024) |
10.4% |
The U.S. renewable energy market growth is poised to be driven by increasing decarbonization targets in the corporate sector. Technology giants such as Microsoft, Google, and Amazon have already committed to operating entirely on renewable energy. In 2023, Amazon became one of the most prominent corporate buyers of renewable energy worldwide, with more than 20 gigawatts (GW) of clean power purchase agreements. This rapid rise in corporate power purchase agreements is anticipated to spur demand for large-scale wind and solar farms.
Grid modernization initiatives is further predicted to push the market growth in the foreseeable future. The Grid Deployment Office of the U.S. Department of Energy has been investing billions of dollars in modernizing transmission infrastructure to improve grid resilience and integrate more renewables. The introduction of interregional transmission projects is envisioned to exemplify this shift. A notable example is the SunZia Transmission Line, which is estimated to deliver wind power to California and Arizona from New Mexico.
Even though the field of renewable energy is showing considerable growth in the U.S., various key bottlenecks are anticipated to hamper the market. The interconnection queue for new projects is a leading factor speculated to limit growth. Lawrence Berkeley National Laboratory recently found that there are over 2,500 GW of energy projects as of 2024 in the U.S. waiting for grid connection approvals. These projects mainly consist of battery storage, solar, and wind.
Due to inadequate grid infrastructure and obsolete transmission planning, such delays can last for several years. In 2022, for example, PJM Interconnection, one of the most significant regional transmission organizations in the U.S., halted its interconnection reviews to keep up with a backlog, thereby ceasing hundreds of clean energy projects.
Land leasing and rural revitalization for renewable projects are expected to provide an untapped opportunity in the U.S. For example, MidAmerican Energy Company alone distributed around US$ 43.6 Mn in lease payments and landowner easement to more than 4,000 property owners in 2024. Also, the Clean Grid Alliance states that solar and wind projects together contribute nearly US$ 134.9 Mn yearly in local and state taxes as well as landowner lease payments. These payments often exceed conventional agricultural subsidies, offering a stable source of income that can safeguard against adverse weather conditions and market volatility.
Government initiatives are further augmenting this trend. The U.S. Department of Agriculture's Rural Energy for America Program (REAP), for instance, assigned US$ 145 Mn to fund about 700 grant and loan awards. This funding helped rural businesses invest in renewable energy and energy efficiency enhancements. The Energy Improvements in Rural or Remote Areas (ERA) program also offers resources to communities with populations under 10,000 to improve the cost-effectiveness and resilience of their local energy infrastructure.
By source, the market is segregated into wind, solar, hydropower, and bioenergy. Among these, the solar segment will likely generate around 28.6% of the U.S. renewable energy market share in 2025. This is attributed to the ongoing expansion of utility-scale solar projects in the country. According to the U.S. Energy Information Administration (EIA), in the lower 48 states, utility-scale solar electricity generation averaged 63.1 GW-hours per day between 10:00 am and 6:00 pm, highlighting a 34% surge over the same period in 2023. This expansion is expected to be boosted by the inclusion of new solar generation capacities.
Wind energy, on the other hand, is estimated to exhibit a considerable growth rate through 2032. The offshore wind energy sector in the U.S. is gaining traction with the operational capacity rising to 242 megawatts (MW) in the first quarter of 2024. In March 2024, for example, the South Fork Wind Farm was commissioned, and it became the first-ever utility-scale offshore wind project of the country. It provided 132 MW of clean energy to New York. With rapid expansion of the offshore wind project pipeline, the segment is poised to witness steady growth.
By application, the market is trifurcated into industrial, commercial, and residential. Out of these, the industrial segment is predicted to account for a share of 54.2% in 2025. Innovation in renewable energy technologies, such as large-scale battery storage systems and high-efficiency solar panels, has improved the scalability and reliability of renewables for industrial use. In addition, rising demand for sustainable products is encouraging industries to embrace renewable energy to meet consumer expectations and corporate sustainability goals.
Residential solar is likely to be a significant component of the U.S. energy sector. Small-scale solar capacity across all sectors was 44 GW, as of June 2023. The residential sector accounted for nearly 67% of this total capacity. According to a new report, by the end of 2024, this capacity reached 55 GW, pointing to steady growth. Introduction of innovative products such as the Tesla Powerwall 3 is expected to provide homeowners with the ability to store solar energy for usage during outages and peak demand times. These products are likely to help enhance potential cost savings and energy independence.
States in West U.S. such as Nevada and California are experiencing high growth in terms of renewable energy installation capacity. These states are also outpacing the others in the integration of diverse renewable sources into their energy mixes. As of 2024, California alone generated over 34% of its electricity from wind and solar combined, says the California Energy Commission. Its solar energy peaked at 20% of the total generation during the summer months.
In Nevada, increasing focus of companies on hybrid renewable energy systems, specifically solar-plus-storage projects, is estimated to create new opportunities. The state’s Gemini Solar Project is considered one of the most prominent of its type. It aims to provide 690 MW of solar power as well as 1.4 gigawatt-hour (GWh) of battery storage. Innovations in these types of systems are anticipated to allow for the storage of renewable energy during peak sunlight hours.
Unlike the West, Southeast U.S. lacks favorable renewable portfolio standards. However, solar power is gaining momentum due to easy land availability, investor-driven utility commitments, and low technology costs. In 2023, Florida was in the third position in terms of new solar installations, adding more than 3.2 GW of capacity, according to the Solar Energy Industries Association (SEIA).
Southeast U.S. is further showcasing potential in offshore wind development projects, especially in the Carolinas. North Carolina’s Clean Energy Plan aims to target 8GW of offshore wind capacity by the end of 2040 which is considered ambitious for a state with no current offshore turbines. The Tennessee Valley Authority (TVA), on the other hand, has been investing huge sums in storage and solar. Under its Green Invest program, TVA approved more than 1.5 GW of new solar contracts in 2023. Owing to the aforementioned factors, the Southeast U.S. is speculated to hold nearly a 25.4% share in 2025.
States such as Minnesota and Iowa in the Midwest have recently emerged as leading biofuel producers, utilizing abundant soybean and corn crops for biodiesel and ethanol. Iowa alone produced more than 4.5 Bn gallons of ethanol annually, as of 2023. The Renewable Fuels Association mentioned that the state accounted for about 30% of the total U.S. output. Wisconsin’s Dairyland Power Cooperative has also joined hands with local farms to introduce digesters that can capture methane and convert it into electricity.
Minnesota has already started exploring woody biomass from sustainably managed forests, specifically in the northern areas. In Hibbing, the Laurentian Energy Authority has a combined heat and power plant that produces district heating and electricity from waste wood and forest residue. Such localized bioenergy projects are estimated to support energy resilience in remote communities. Hydropower remains a steady contributor to the regional grid, mainly along the Ohio, Missouri, and Mississippi River systems. The U.S. Army Corps of Engineers, operates at several small- to medium-sized hydroelectric plants in this region.
The U.S. renewable energy market is highly competitive with the presence of various large- and small-scale companies. Leading players are focusing on extending their renewable portfolios, while a few international companies are striving to invest in wind and solar projects across the U.S. The market is estimated to witness the entry of several start-ups through 2032. They are anticipated to launch new technologies in distributed generation, grid management, and energy storage. Collaborations and partnerships are also a key strategy embraced by multiple players to strengthen their footprint.
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Report Attribute |
Details |
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Historical Data/Actuals |
2019 - 2024 |
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Forecast Period |
2025 - 2032 |
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Market Analysis Units |
Installed Capacity: Gigawatt (GW), Revenue (if applicable): US$ Mn/Bn |
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Geographical Coverage |
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Segmental Coverage |
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Competitive Analysis |
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Report Highlights |
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Customization and Pricing |
Available upon request |
By Source
By Application
By Zone
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The U.S. renewable energy market is projected to reach a power installation of 481.5 Gigawatt in 2025.
Increasing government investments and surging decarbonization targets in the corporate sector are the key market drivers.
The market is poised to witness a CAGR of 12.7% from 2025 to 2032.
Innovations in large-scale battery storage systems and the emergence of interregional transmission projects are the key market opportunities.
General Electric Company, First Solar Inc., and Sunrun Inc. are a few key market players.
