Electricity consumption is rising in the USA: How will this drive the growth of renewable energy?

As the United States anticipates record-breaking electricity consumption in 2025 and 2026, the energy sector is undergoing a significant transformation.

Driven by the proliferation of data centers, the electrification of transportation, and increased residential and commercial demand, power usage is projected to reach 4,205 billion kWh in 2025 and 4,252 billion kWh in 2026, surpassing the previous high of 4,097 billion kWh in 2024.

To meet this surging demand, the U.S. is rapidly expanding its renewable energy infrastructure. Utility-scale solar power is at the forefront, with an expected addition of 135 GW between 2020 and 2026, marking a 34% increase in 2025 and an 18% rise in 2026. Battery storage capacity is also set to grow substantially, with projections indicating an addition of 57.5 GW in the same period, outpacing wind energy and natural gas expansions.

Texas and California are leading this renewable surge. Texas, in particular, has more battery storage projects planned than any other state, with 19.7 GW of additional capacity expected to come online in the next couple of years. These developments are crucial for enhancing grid reliability and integrating renewable resources.

However, the renewable energy sector faces challenges. In 2025, over $14 billion in clean energy projects have been canceled or delayed, partly due to proposed tax legislation that threatens to eliminate clean energy credits central to the Inflation Reduction Act. This policy uncertainty has led to the halting of several projects, including battery factories and hydrogen fuel cell investments.

Despite these hurdles, the momentum towards a renewable-powered future remains strong. The U.S. energy storage industry has committed $100 billion to develop and manufacture American-made batteries, aiming to meet 100% of domestic energy storage demand by 2030 . This investment is pivotal for reducing reliance on imported components and ensuring energy security.

In conclusion, as electricity consumption reaches unprecedented levels, the United States is poised to meet this demand through significant investments in renewable energy and storage solutions. While policy and market challenges persist, the trajectory towards a cleaner, more resilient energy grid is clear, with solar and battery storage playing central roles in powering the nation's future.