The U.S. renewable energy sector has shown robust momentum at the beginning of 2025, with the first quarter ranking as the second-strongest start in the history of American clean energy development, according to the latest data released by the American Clean Power Association (ACP). As of the end of March, the cumulative installed capacity of solar, energy storage, and wind power across the nation has surpassed 320GW. Among the newly added capacities, large-scale ground-mounted solar accounted for over half with 4.46GW, followed by 1.6GW of energy storage and 1.3GW of onshore wind. The national clean energy project pipeline grew by 12% year-over-year to 184.4GW, with energy storage projects surging by 57%. ACP estimates that if all these projects are completed, they could attract up to $328 billion in investments.
Regionally, Republican-led states have emerged as new engines for clean energy growth. ACP’s report reveals that eight out of the top ten states for new installations in Q1 are Republican-controlled, with Texas, Florida, and Indiana leading the pack. Texas continues to dominate, with its cumulative installed capacity exceeding 80GW, representing a 20% year-over-year increase. “Industry growth has been particularly strong in Republican-leaning states,” ACP noted in its report. These states’ local manufacturing and energy development activities have collectively created nearly 650,000 direct and indirect jobs, generating $3.4 billion annually in tax revenues and land lease payments for rural communities.
However, clean energy has become increasingly politicized in the United States. Since President Trump’s return to office, his administration has been rolling back clean energy tax incentives established under the previous administration’s Inflation Reduction Act (IRA). A recent bill passed by the House of Representatives even proposes a 60-day deadline to effectively eliminate the 30% Investment Tax Credit (ITC) and Production Tax Credit (PTC) for clean energy projects. Despite industry experts pointing out that Republican-led states have significantly benefited from the IRA policy—with a substantial portion of the nation’s approximately 50GW of solar module manufacturing capacity located in states like Texas, Ohio, and Georgia, driving significant local manufacturing and employment—policy uncertainty continues to deal a severe blow to the industry.
A concurrent study by the environmental think tank E2 platform reveals that since President Trump took office in January 2025, as much as $14 billion in clean energy investments in the United States have been delayed or canceled. The report emphasizes that the total amount of delayed or shelved funds far exceeds the value of projects that have actually proceeded during the same period, underscoring the detrimental impact of policy uncertainty on industry investment confidence.
ACP CEO Jason Grumet stated, “Clean energy projects are poised for large-scale construction. Against the backdrop of unprecedented growth in electricity demand, the energy sector must send a consistent signal for sustained investment. We already possess the necessary technologies, capital, and workforce to develop projects worth over $300 billion. The greatest uncertainty now lies in the unpredictability of the political system.”
