USA Renewable Energy Market Outlook to 2028

USA Renewable Energy Market Overview

USA Renewable Energy market has shown substantial growth over recent years. In 2018, the market size was valued at 733.2 million Kw Hrs By 2023, it had reached 861.5 billion Kw Hrs, reflecting a Compound Annual Growth Rate (CAGR) of 3.2%.

The key players in the USA Renewable Energy market include Next Era Energy, Duke Energy, Southern Company, Dominion Energy, and Exelon Corporation. These companies have been at the forefront of adopting and integrating renewable energy sources into their operations and expanding their renewable energy portfolios through strategic investments and innovations.

In March 2023, Next Era Energy announced a significant investment of USD 5 billion in a new solar and wind energy project in Texas. This project is expected to add 2 GW of renewable energy capacity, further solidifying Texas as a leading state in renewable energy production. This development marks one of the largest investments in renewable energy in the USA to date.

USA Renewable Energy Current Market Analysis:

The federal and state governments in the USA have implemented various incentives and policies to promote renewable energy adoption. The Production Tax Credit (PTC) and Investment Tax Credit (ITC) have significantly boosted the deployment of wind and solar energy projects.

The growth of the renewable energy market has had a profound impact on the overall energy landscape in the USA. It has led to a significant reduction in greenhouse gas emissions, created numerous jobs in the renewable energy sector, and decreased the country's reliance on fossil fuels, enhancing energy security.

California is a leading region in the USA Renewable Energy market. The state's aggressive renewable energy targets, favorable climate, and robust policy framework have made it a dominant player in the market.

USA Renewable Energy Market Segmentation:

By Technology: USA Renewable Energy Market is segmented by technology into Solar, Wind, Hydropower, Thermal & Biomass. In 2023, Solar technology dominates this segment because the cost of solar photovoltaic (PV) panels has decreased significantly over the past decade. This reduction is driven by advancements in technology, economies of scale, and increased manufacturing efficiency. Lower costs make solar energy more competitive compared to other energy sources.

By Application: USA Renewable Energy is segmented by application into utility scale generation, distributed generation and transportation. In 2023, Utility scale generation dominates this segment. Utility-scale renewable energy projects, especially solar and wind farms benefit from economies of scale. Larger installations help in reducing per-unit costs for equipment, construction, and maintenance.

By Region: USA Renewable Energy market is segmented into Northeast, Midwest, Southeast and West regions. West region is dominating the renewable energy market. The West, especially states like California, Arizona, and Nevada has high solar irradiance which makes it ideal for solar power generation. State and local governments offer various incentives like tax credits, rebates, and grants, to promote renewable energy projects.

USA Renewable Energy Market Competitive Landscape

Major Players

Company

Year of Establishment

Headquarters

Next Era Energy, Inc.

1984

Juno Beach, FL

Duke Energy Corporation

1904

Charlotte, NC

Southern Company

1945

Atlanta, GA

Dominion Energy, Inc.

1983

Richmond, VA

Exelon Corporation

2000

Chicago, IL

Expertise in securing permits, navigating regulations, and efficiently developing renewable energy projects is crucial. In 2022, Next Era Energy developed 28,000 MW of renewable energy projects, showcasing their ability to manage complex regulatory environments.

Access to capital for project development, acquisitions, and technological advancements is essential. Brookfield Renewable Partners exemplifies financial strength in the renewable sector. Their ability to fund massive projects ensures continuous growth and technological innovation, underpinning their market leadership and enabling strategic acquisitions.

Sunrun, a top residential solar installer, maintains a strong customer base with over 724,000 customers in 2023, emphasizing their service quality. Reliable maintenance and customer support ensure customer retention and satisfaction, fostering trust and long-term engagement in the renewable energy market

USA Renewable Energy Market Analysis

USA Renewable Energy Major Growth Drivers

Technological Advancements in Wind-Turbine Energy: The rapid advancements in renewable energy technologies, particularly in solar and wind energy, have significantly reduced costs and increased efficiency. Wind turbine technology has also seen improvements, with average turbine sizes increasing to 2.75 MW to 3 MW in 2023, enhancing energy output and reducing overall costs.

Federal Tax Incentives and Subsidies: The extension and expansion of federal tax incentives, such as the Investment Tax Credit (ITC) and the Production Tax Credit (PTC), continue to drive investments in renewable energy. The ITC, which offers a 26% tax credit for solar systems on residential and commercial properties, has been extended through 2024, encouraging more installations and investments.

Corporate Commitments to Sustainability: Major corporations are increasingly committing to 100% renewable energy targets, driving demand for renewable energy projects. In 2024, over 300 companies, including giants like Apple, Google, and Amazon, have pledged to source all their energy from renewable sources. These commitments are pushing utilities and independent power producers to expand their renewable energy portfolios to meet corporate demand.

Rise of Renewable Energy Community Projects: Community-based renewable energy projects are becoming increasingly popular, providing local solutions for clean energy. As of 2024, there are over 3,000 community solar projects in the U.S., enabling households and businesses to invest in shared solar arrays.

USA Renewable Energy Market Challenges

Grid Integration and Stability: Integrating a high percentage of intermittent renewable energy sources like solar and wind into the power grid poses significant challenges for grid stability and reliability. In 2024, regions with high renewable penetration, such as California and Texas, have experienced issues with grid congestion and the need for increased grid flexibility.

Supply Chain Disruptions: The renewable energy industry faces supply chain disruptions that can delay project timelines and increase costs. In 2024, the global supply chain for critical components like solar panels and wind turbines has been affected by geopolitical tensions and trade restrictions, causing delays and price increases.

Land Use and Environmental Concerns: The large-scale deployment of renewable energy projects, particularly wind farms and solar parks, raises concerns about land use and environmental impacts. In 2024, there have been growing objections from local communities and environmental groups regarding the impact of large renewable energy installations on wildlife habitats.

USA Renewable Energy Government Initiatives

Clean Energy Standard Act (2021): This federal policy aims to achieve 100% clean electricity by 2035. It has provided a strong regulatory framework to drive renewable energy investments and development.

Renewable Energy Tax Credits Extension (2022): The extension of the PTC and ITC has provided long-term certainty for investors, encouraging continued growth and development in the renewable energy sector.

Infrastructure Investment and Jobs Act (2021): This act includes significant funding for renewable energy projects and grid modernization, aiming to enhance the reliability and resilience of the national grid.

USA Renewable Energy Future Market Outlook

The USA Renewable Energy market is projected to continue growing at a strong pace, driven by supportive government policies, technological advancements, and increasing corporate and consumer demand for clean energy.

Future Trends

Energy Storage Integration: The integration of advanced energy storage solutions with renewable energy projects will become more prevalent, improving grid reliability and enabling higher renewable energy penetration.

Offshore Wind Expansion: The offshore wind sector is poised for significant growth, with several large-scale projects in the pipeline and strong federal and state support driving development.

Corporate Power Purchase Agreements (PPAs): Corporate PPAs will continue to rise as businesses seek to meet sustainability goals and secure long-term, stable energy prices.
Please Note: It will take 5-7 business days to complete the report upon order confirmation