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Clean energy growth shattered records in 2024, but political uncertainty looms
Clean energy installations in the U.S. surged 47% last year, driven by tax credits and falling costs, but future growth faces challenges from the Trump administration’s policies.
In short:
- The U.S. added 48.2 gigawatts of utility-scale solar, wind and battery storage in 2024, with carbon-free sources making up 95% of new power capacity.
- Solar led the expansion, growing 65% from 2023, while wind power continued to decline due to transmission issues and offshore project cancellations.
- Battery storage saw rapid growth, but tariffs on Chinese imports and political opposition could slow progress.
Key quote:
“Uncertainty around the Trump administration’s energy agenda and the future of the IRA will cause the [utility-scale solar] segment to stagnate, despite extremely high demand from data centers.”
— Analysts at Wood Mackenzie
Why this matters:
The rapid expansion of renewable energy has been one of the defining trends of the past decade, with solar power and battery storage leading the way. Advances in technology and falling costs have made these sectors more competitive than ever, helping to drive record-breaking installations. But while solar is thriving, wind energy is facing headwinds. Rising costs, supply chain disruptions and local opposition have slowed the pace of new wind projects, particularly offshore. For now, the outlook for renewables remains largely positive, with strong momentum in solar and energy storage. But whether the sector continues to accelerate — or encounters major roadblocks — may depend on how policymakers choose to navigate the evolving energy economy.
Related: Op-ed: In the race for clean energy, the US is both a leader and a laggard — here’s how
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Trump defies court orders, continues to block climate funding
President Donald Trump has halted billions in Biden-era climate and infrastructure funds, despite court rulings ordering their release.
In short:
- Trump issued an executive order pausing spending from the Inflation Reduction Act and the Bipartisan Infrastructure Law, affecting clean energy, public transit and pollution cleanup projects.
- A federal judge ruled the freeze illegal, but the Trump administration has yet to comply, leaving funds in limbo.
- Many grantees, including nonprofits, schools and small businesses, face financial strain, with some at risk of shutting down.
Key quote:
“The general rule is that once Congress appropriates and directs the expenditure of money, the executive has always been understood to be bound by that command.”
— Aziz Huq, constitutional law scholar, University of Chicago
Why this matters:
The withholding of climate and infrastructure funds could send ripples through communities across the country, stalling projects meant to advance clean energy, modernize water systems and protect against the effects of climate change. From solar panel installations in sun-soaked states to water treatment upgrades in regions grappling with pollution, the funding freeze has left local governments, businesses and environmental advocates in limbo. With billions in federal dollars tied up, experts warn that crucial climate initiatives could lose momentum at a time when urgency is paramount.
Read more: Trump halts billions in Biden-era infrastructure funding with executive order
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Trump pushes EPA to decide whether to drop climate pollution rules
President Donald Trump has given EPA Administrator Lee Zeldin one week to determine if the agency can abandon its authority to regulate climate pollution under the Clean Air Act, a move that could reshape U.S. climate policy.
In short:
- Trump’s executive order directs EPA to review the 2009 endangerment finding, which underpins greenhouse gas regulation, and determine its legality by Feb. 19.
- Overturning the finding could make it easier to eliminate climate rules without replacement, but legal challenges could stall the effort and drain the EPA’s resources.
- Industry groups and legal experts warn that removing EPA’s regulatory authority could increase litigation and limit future administrations’ ability to address climate change.
Key quote:
"Taking away the 2009 endangerment finding would really make it almost a virtual formality to take down all the greenhouse rules for CO2 and methane."
— Joe Goffman, former EPA air chief under President Biden
Why this matters:
The fate of U.S. climate policy may hang in the balance as the Environmental Protection Agency considers scaling back its authority over climate pollution. Such a move would have long-lasting consequences, making it harder for future administrations to reestablish strong regulations on greenhouse gas emissions. With fewer restrictions in place, fossil fuel use could surge, driving up emissions and exacerbating climate-related disasters like wildfires, hurricanes and heat waves. As scientists warn of worsening climate effects, the debate over regulatory authority has become a critical front in the fight against global warming.
Related: New EPA chief plans cuts, industry hires and a focus on AI
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Biden-era climate funding faces rollback as Trump's EPA seeks to reclaim $20 billion
The U.S. Environmental Protection Agency will attempt to rescind $20 billion allocated for clean energy projects under the Biden administration, with EPA Administrator Lee Zeldin citing concerns over rushed spending and limited oversight.
In short:
- Zeldin announced plans to terminate the EPA’s financial agreement with Citi, which was managing the distribution of the funds.
- The move aligns with President Donald Trump’s broader efforts to freeze federal climate funding, despite a court ruling requiring the release of grant money.
- The decision follows a covertly recorded video of an EPA official describing efforts to distribute funds quickly before the new administration took office.
Key quote:
“The days of irresponsibly shoveling boatloads of cash to far-left activist groups in the name of environmental justice and climate equity are over.”
— Lee Zeldin, EPA administrator
Why this matters:
The fight over climate funding underscores the deep political divide in U.S. environmental policy. As some lawmakers push to reclaim federal dollars allocated for renewable energy and climate mitigation, the uncertainty threatens to slow investments in clean technology and infrastructure projects nationwide. At stake are billions of dollars intended to help reduce greenhouse gas emissions, modernize the power grid and support industries transitioning away from fossil fuels.
Related: Zeldin confirmed to lead EPA, setting the stage for regulatory rollbacks
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Trump nominates oil industry advocate to oversee public land drilling
President Donald Trump has nominated Kathleen Sgamma, a longtime oil and gas industry leader, to head the Bureau of Land Management, putting a pro-drilling advocate in charge of public land policy.
In short:
- Sgamma leads the Western Energy Alliance, a trade group that sued the Biden administration over a conservation rule that prioritized environmental protection on public lands.
- If confirmed, she would help implement Trump’s pro-drilling agenda, reversing Biden-era policies that expanded conservation and renewable energy efforts.
- Environmentalists oppose her nomination, while oil industry leaders praise her for understanding energy production challenges on federal lands.
Key quote:
“We have no choice but to litigate. These conservation leases seem to be designed to preclude energy development on federal lands.”
— Kathleen Sgamma, president of the Western Energy Alliance
Why this matters:
Kathleen Sgamma’s nomination marks a significant shift in federal land and energy policy, signaling a potential rollback of conservation policies in favor of expanded fossil fuel development. As a longtime advocate for the oil and gas industry, Sgamma has been a vocal critic of regulatory restrictions on drilling, arguing that they stifle economic growth and energy independence. If confirmed, she would likely push for increased leasing of public lands for oil and gas extraction, a move that could have broad implications for climate policy, wildlife protection and renewable energy initiatives.
Read more: New order weakens protections for public lands and wildlife
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Texas leads U.S. in solar and battery storage growth
Texas added more solar and battery storage capacity to its power grid than any other energy source in 2024, continuing its rapid expansion of renewable energy.
In short:
- Texas nearly tripled its battery storage capacity in 2024, adding 4,374 megawatts, while solar capacity grew to nearly 9,700 megawatts.
- The state's independent grid operator, ERCOT, is incorporating more battery storage to help manage peak electricity demand, particularly during extreme weather.
- Texas' renewable energy expansion, spurred by transmission infrastructure built for wind power, has positioned the state as a national leader in utility-scale solar.
Key quote:
“Batteries made a meaningful contribution to what those shoulder periods look like and how much scarcity we get into during these peak events.”
— Pablo Vegas, ERCOT CEO
Why this matters:
Texas’ rapid expansion of solar and battery storage is reshaping its energy landscape. Once heavily dependent on fossil fuels, the state now rivals California in renewable energy capacity. Battery storage helps balance fluctuations in solar power, reducing strain on the grid during extreme weather. As demand for electricity grows — driven by industries like data centers and AI — Texas' ability to integrate renewables could serve as a model for other states navigating the transition away from fossil fuels. If politics don't interfere, that is.
Read more: Texas outpaces California in renewable energy growth
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China ramps up coal power despite clean energy growth
China started construction on nearly 100 gigawatts of new coal power capacity in 2024, the highest in nearly a decade, raising concerns about its climate commitments.
In short:
- China accounted for 93% of global coal power plant construction starts last year, adding 94.5 gigawatts of capacity.
- Despite rapid solar and wind expansion, fossil fuel generation remained high while renewables saw declining utilization.
- Government approvals for coal projects have slowed, but many previously approved plants are still moving forward.
Key quote:
“We urge China to refrain from starting construction on already-approved coal power plants to prevent further overcapacity, reduce emissions and align with its climate commitments.”
— Qi Qin, China analyst for the Centre for Research on Energy and Clean Air
Why this matters:
China’s aggressive expansion of coal power threatens to undercut both global climate goals and its own emissions reduction targets. Even as the country dominates in renewable energy deployment — installing record-breaking amounts of solar and wind capacity — it continues to approve and build new coal plants at a rapid pace. The International Energy Agency and climate scientists warn that phasing out coal is critical to meeting climate targets, yet China’s actions suggest that economic and political priorities remain a formidable barrier to rapid decarbonization.
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