Solar Energy Beats Natural Gas By A Mile In US This Year

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President* Trump wants coal, oil, and natural gas to dominate the US energy profile, but he’s already lost the battle. Red and blue states alike are racing to add more generating capacity, and solar energy is by far the fuel of choice, with energy storage chipping in a generous share and wind hanging on despite the freeze on offshore leases. As for gas…

Solar Energy Wins, By A Mile, Again

The US solar energy industry is coming off a banner year in 2024, when the US Energy Information Administration calculated that utility-scale power generators added 30 gigawatts of utility-scale solar to the U.S. grid. That set a new record and accounted for 61% of capacity additions last year.

There’s plenty more where that came from. On February 24, EIA released a preliminary estimate of 63 gigawatts for the total capacity of all new utility-scale power plants to be added in the US this year, with solar breaking its own record at 32.5 GW.

EIA further estimates that the combined total of solar and energy storage will account for 81% of all new capacity additions.

Those figures underscore how quickly the US can add new generating capacity now that solar energy, storage, and other renewables are on the market. EIA notes that the total figure of 63 GW will enable utility-scale US power generators to handily beat — by 30% — last year’s total capacity additions of 48.6 GW.

Additionally, 2024 was itself a record-beater, representing the most capacity additions since 2002.

Solar Energy Trumps Natural Gas

Contrasting to the strong show by solar energy, EIA anticipates that natural gas will clock in at a measly 4.4 GW in added capacity this year. That’s far less than wind, which will manage to add 7.7 gigawatts despite facing significant pushback against new wind farms, both onshore and offshore.

In addition, the figure for new natural gas capacity does not necessarily correspond to an overall increase in the nation’s total generating capacity, because the coal-to-gas conversion trend will continue in 2025. One of the new gas projects will be located at the Intermountain Power Project in Utah, where 1.8 GW in coal generation capacity is scheduled for retirement in July. The IPP project alone will account for close to half of the 4.4 GW total for gas.

That’s not all. A partner in the new IPP gas plant is Mitsubishi, which is among the turbine manufacturers anticipating that an ample supply of non-fossil green hydrogen will be available for power generation in the years to come. Accordingly, the IPP turbines were engineered to run on gas initially, and they are capable of integrating green hydrogen as it becomes available.

More Solar Energy For The USA

In another sign of strength for solar energy in 2025, EIA expects the politically random pattern of solar adoption to continue in 2025. The red state of Texas, for example, has already staked out its claim as a wind energy leader and its solar industry is booming as well.

For 2025, EIA anticipates that Texas will blow to the top with 11.6 GW in new solar capacity, leaving California far behind in the #2 slot at 2.9 gigawatts. “We expect five other states (Indiana, Arizona, Michigan, Florida, and New York) each to account for more than 1 GW of added solar capacity in 2025 and collectively account for 7.8 GW of planned solar capacity additions,” EIA adds.

Signs of momentum beyond 2025 are already appearing. Unlike the offshore wind industry, solar energy stakeholders don’t have to depend on leasing federally controlled areas. If solar developers are prohibited from building on federal land, there are ample opportunities under other jurisdictions and private ownership, and solar developers are jumping on those.

The Connecticut firm Louth Callan, for example, just announced that it is moving into new markets in the Midwest, highlighted by three new solar energy projects in Illinois totaling 121 megawatts.

“This achievement represents a major step in the company’s strategic growth and reinforces its commitment to developing and constructing high-quality renewable energy infrastructure across the United States,” Loth Callan stated.

The Energy Transition Is Global

Domestic solar manufacturers still have faith in the US market as well. On February 24, the US solar cell manufacturer ES Foundry announced a 300-megawatt sale to Bila Solar, the US branch of the Singapore-based firm Bila.

Bila Solar set up shop in a retrofitted Eli Lilly facility in Indiana, where it will deploy the new solar cells in modules for its patented ultra-lightweight solar panels. “This agreement with Bila Solar underscores the increasing market confidence in American-made solar cells,” explains ES Foundry VP of sales Ken Johnston, Vice President of Sales at ES Foundry. Johnston also emphasized that the agreement “reinforces the U.S. as a global leader in clean energy manufacturing.”

“This partnership with Bila Solar reflects the increasing demand for scalable, U.S.-produced solar technology and reinforces ES Foundry’s ability to deliver at commercial volumes,” ES Foundry adds.

In a press statement on February 24, both companies underscored the role of the 10% bonus federal tax credit for domestic solar modules.

“Ever since the U.S. Treasury published its Safe Harbor guidelines regarding the 10% domestic content bonus credit, we’ve seen greater interest in a U.S.-produced module that incorporates a U.S.-made solar cell,” Bila Solar general manager Mick McDaniel.

Next Steps For The USA

Of course, fossil energy producers in the US don’t have to worry that much about growing their footprint in the domestic market, as long as they can make up the difference in overseas exports.

That may be more challenging than they expect. Europe, for example, is still trying to claw its way out of Russia’s fossil fuel tentacles, leveraging wind and solar energy along with green hydrogen networks among other resources. However, Europe still imports a lot of oil and gas from Russia. If US exporters try to horn in on the action, they may encounter some pushback from points East.

President Trump has declared a new alliance between the US and Russia against Ukraine and Europe, which also means big opportunities for other exporters. Canada and North Africa, for example, are already prepping to ship their green hydrogen to Europe.

As for the radical and abrupt shift in foreign policy, it’s worth a reminder that the US is not a monarchy, autocracy, or dictatorship, at least not yet. Nevertheless, Trump is following through on his efforts to convert the US into a Soviet-style satellite of Russia. The Republican majority in Congress could take action to restore the federal government to normal Constitutional order, but so far it’s been all cricket chirps from that side of the aisle.

*Concerned? Don’t want to live in a monarch, autocracy, or dictatorship? Share your thoughts in the comment thread or better yet, contact your representatives in Congress.

Photo (cropped): Solar energy stakeholders in the US are looking at another record-breaking year in 2025, according to a new report from the US Energy Information Agency (courtesy of National Renewable Energy Laboratory).

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