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US Renewables Energy Market

ID: MRFR/EnP/16769-HCR
100 Pages
MRFR Team
February 2026

US India Renewables Energy Market

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US Renewables Energy Market Infographic
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US Renewables Energy Market Summary

As per analysis, the US Renewable Energy Market is projected to grow from USD 138.4 Billion in 2025 to USD 279.68 Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 7.36% during the forecast period (2025 - 2035).

Key Market Trends & Highlights

The US Renewable Energy Market is experiencing robust growth driven by technological advancements and increasing consumer demand.

  • Solar energy remains the largest segment in the US renewable energy market, reflecting a substantial increase in investment.
  • Wind energy is the fastest-growing segment, showcasing significant expansion in capacity across various states.
  • Energy storage solutions are emerging rapidly, indicating a shift towards more reliable and efficient energy systems.
  • Government incentives and growing consumer demand for clean energy are key drivers propelling market growth.

Market Size & Forecast

2024 Market Size 128.0 (USD Billion)
2035 Market Size 279.68 (USD Billion)
CAGR (2025 - 2035) 7.36%

Major Players

NextEra Energy (US), Duke Energy (US), Exelon Corporation (US), Pacific Gas and Electric Company (US), Southern Company (US), First Solar (US), Nextera Energy Resources (US), Orsted North America (US), Enphase Energy (US)

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US Renewables Energy Market Trends

The US Renewable Energy Market is currently experiencing a transformative phase characterized by a robust shift towards sustainable energy sources. This transition is driven by a combination of technological advancements, regulatory support, and increasing public awareness regarding climate change. The market appears to be expanding rapidly, with various sectors such as solar, wind, and bioenergy gaining traction. Furthermore, the integration of renewable energy into the national grid is becoming more prevalent, suggesting a future where clean energy plays a central role in the country's energy landscape. In January 2026, the emphasis on reducing greenhouse gas emissions continues to shape policies and investments within the US Renewable Energy Market. Federal and state governments are implementing incentives to promote renewable energy adoption, which may lead to further innovations in energy storage and distribution. As the market evolves, it seems likely that collaboration between public and private sectors will enhance the development of infrastructure necessary for a sustainable energy future. This dynamic environment indicates a promising trajectory for renewable energy in the United States, with potential benefits for both the economy and the environment.

Increased Investment in Solar Energy

The US Renewable Energy Market is witnessing a notable surge in investments directed towards solar energy projects. This trend is largely influenced by declining costs of solar technology and favorable government policies. As more individuals and businesses recognize the advantages of solar power, the market is likely to see a proliferation of installations across residential and commercial sectors.

Expansion of Wind Energy Capacity

Wind energy is becoming an increasingly vital component of the US Renewable Energy Market. The growth in wind energy capacity is supported by advancements in turbine technology and favorable wind conditions in various regions. This expansion not only contributes to energy diversification but also plays a crucial role in achieving national energy goals.

Emergence of Energy Storage Solutions

The development of energy storage solutions is gaining momentum within the US Renewable Energy Market. As renewable energy sources like solar and wind are inherently variable, effective storage systems are essential for ensuring a reliable energy supply. Innovations in battery technology and other storage methods are likely to enhance the stability and efficiency of renewable energy integration.

US Renewables Energy Market Drivers

Technological Advancements

Technological advancements play a crucial role in shaping the US Renewable Energy Market. Innovations in solar panel efficiency, wind turbine design, and energy storage solutions have led to a significant reduction in costs and an increase in energy output. For instance, the average cost of utility-scale solar photovoltaic systems has dropped by over 80% since 2010, making solar energy more accessible and competitive with fossil fuels. Furthermore, advancements in battery storage technology are enabling better integration of renewable energy into the grid, addressing intermittency issues associated with solar and wind energy. As these technologies continue to evolve, they are likely to enhance the overall efficiency and reliability of the US Renewable Energy Market, attracting more investments and facilitating a transition towards a sustainable energy future.

Government Incentives and Policies

The US Renewable Energy Market benefits significantly from various government incentives and policies aimed at promoting clean energy. Federal tax credits, such as the Investment Tax Credit (ITC) and the Production Tax Credit (PTC), have been instrumental in driving investments in solar and wind energy projects. In 2025, the ITC was extended, allowing solar energy projects to receive a 30% tax credit, which is expected to stimulate further growth in the sector. Additionally, state-level renewable portfolio standards (RPS) mandate utilities to obtain a certain percentage of their energy from renewable sources, thereby creating a stable demand for renewable energy. These policies not only enhance the financial viability of renewable projects but also contribute to job creation and economic growth within the US Renewable Energy Market.

Corporate Sustainability Initiatives

The rise of corporate sustainability initiatives is significantly influencing the US Renewable Energy Market. Many large corporations are setting ambitious renewable energy targets, often committing to 100% renewable energy usage. For example, in 2025, major tech companies like Google and Apple announced plans to power their operations entirely with renewable energy. This trend is not only enhancing the reputation of these companies but also driving demand for renewable energy projects. As corporations invest in renewable energy procurement, they are likely to enter long-term power purchase agreements (PPAs) with renewable energy developers, providing a stable revenue stream for the US Renewable Energy Market. This corporate shift towards sustainability is expected to create a ripple effect, encouraging smaller businesses to follow suit and further expanding the market.

Growing Consumer Demand for Clean Energy

There is a noticeable shift in consumer preferences towards clean energy solutions, which is driving growth in the US Renewable Energy Market. A survey conducted in 2025 indicated that over 70% of American consumers are willing to pay a premium for renewable energy sources, reflecting a growing awareness of environmental issues and climate change. This consumer demand is prompting utilities to expand their renewable energy offerings and invest in sustainable practices. Additionally, corporate commitments to sustainability, with many companies pledging to achieve net-zero emissions by 2030, are further fueling the demand for renewable energy. As businesses increasingly seek to source their energy from renewable sources, the US Renewable Energy Market is likely to experience accelerated growth, leading to a more sustainable energy landscape.

Climate Change Awareness and Policy Pressure

Increasing awareness of climate change and its impacts is exerting pressure on policymakers and businesses to transition towards renewable energy sources. The US Renewable Energy Market is experiencing heightened scrutiny as stakeholders demand action to mitigate climate change effects. In 2025, several states implemented stricter emissions regulations, compelling utilities to reduce their reliance on fossil fuels and invest in renewable energy alternatives. Public sentiment is increasingly favoring clean energy solutions, with many advocating for policies that support renewable energy development. This societal push for action is likely to result in more robust legislative frameworks and funding opportunities for renewable projects, thereby accelerating the growth of the US Renewable Energy Market. As climate change continues to be a pressing global issue, the urgency for a transition to renewable energy sources will likely intensify.

Market Segment Insights

By Application: Electricity Generation (Largest) vs. Energy Storage (Fastest-Growing)

The US Renewable Energy Market demonstrates a diverse application landscape, with Electricity Generation leading as the largest segment. This segment capitalizes on developments in wind, solar, and hydroelectric technologies, reflecting a robust acceptance of renewables as viable energy sources. Meanwhile, Energy Storage is emerging rapidly, essential for stabilizing supply amidst growing variable energy sources. Other segments, like Heating and Transportation, also contribute to the market dynamics but in less significant proportions than the top two segments.

Electricity Generation (Dominant) vs. Energy Storage (Emerging)

Electricity Generation remains the dominant application in the renewable energy landscape, underpinned by comprehensive infrastructural investments and technological advancements in solar and wind energy. It benefits from widespread regulatory support and incentives promoting cleaner energy. On the other hand, Energy Storage is witnessing emerging status due to escalating needs for grid reliability and the integration of intermittent renewable sources. Innovations in battery technologies and storage systems have bolstered this segment, while market demand is fueled by increased electric vehicle usage and renewable power dependence.

By Energy Source: Solar Energy (Largest) vs. Wind Energy (Fastest-Growing)

In the US Renewable Energy Market, the energy source segment showcases a diverse distribution among solar, wind, hydropower, geothermal, and biomass energy. Solar energy holds the largest market share, driven by declining costs and increasing consumer adoption. Wind energy follows closely, marking significant contributions to the renewable mix. Hydropower maintains a constant presence, while geothermal and biomass energy are essential for localized energy solutions and sustainability efforts.

Energy Source: Solar Energy (Dominant) vs. Wind Energy (Emerging)

Solar energy is characterized by its extensive use in residential and commercial applications, leveraging advancements in photovoltaic technology. The increasing implementation of solar farms across the United States highlights its dominance in the renewable energy landscape. Conversely, wind energy emerges as a rapidly growing segment; technological improvements and government incentives have fostered the installation of wind turbines at an unprecedented rate. Wind energy not only benefits from economies of scale but also aligns well with sustainability goals, making it an essential component of the nation's energy transition.

By End Use: Residential (Largest) vs. Commercial (Fastest-Growing)

In the US Renewable Energy Market, the End Use segment comprises various sectors including Residential, Commercial, Industrial, Utility, and Agricultural. The Residential sector holds the largest market share, primarily driven by increased consumer awareness and government incentives promoting renewable energy technologies, such as solar energy systems and energy-efficient appliances. Meanwhile, the Commercial sector is experiencing rapid growth, as businesses seek to reduce energy costs and enhance sustainability practices, contributing to a shift towards renewable resources.

Residential (Dominant) vs. Commercial (Emerging)

The Residential sector is characterized by a diverse array of renewable energy solutions tailored for homeowners, such as solar panels and energy storage systems. It benefits from favorable government policies and a growing trend towards energy independence among consumers. In contrast, the Commercial sector, while currently emerging, is rapidly adapting to renewable energy integration by adopting solar energy, wind energy, and energy efficiency solutions to meet regulatory goals and corporate sustainability commitments. This sector's growth is fueled by increasing energy demands and a shift towards greener operations, making it a critical area for future investment and development.

Get more detailed insights about US Renewables Energy Market

Key Players and Competitive Insights

The Renewable Energy Market in the US is characterized by a dynamic competitive landscape, driven by a confluence of regulatory support, technological advancements, and increasing consumer demand for sustainable energy solutions. Major players such as NextEra Energy (US), Duke Energy (US), and Exelon Corporation (US) are strategically positioned to leverage these growth drivers. NextEra Energy (US) focuses on innovation in solar and wind energy, while Duke Energy (US) emphasizes a balanced energy portfolio that includes significant investments in renewable sources. Exelon Corporation (US) is committed to decarbonization, aiming to transition its fleet towards cleaner energy. Collectively, these strategies not only enhance their market presence but also shape the competitive environment by fostering a culture of sustainability and technological advancement.

Key business tactics employed by these companies include localizing manufacturing and optimizing supply chains to enhance operational efficiency. The market structure appears moderately fragmented, with a mix of large incumbents and emerging players. This fragmentation allows for diverse strategies and innovations, as smaller firms often introduce niche solutions that challenge established norms. The collective influence of these key players is substantial, as they set benchmarks for operational excellence and sustainability practices within the industry.

In December 2025, NextEra Energy (US) announced a partnership with a leading battery storage technology firm to enhance its renewable energy storage capabilities. This strategic move is likely to bolster its position in the market by addressing the intermittency issues associated with renewable energy sources, thereby improving grid reliability and energy security. Such advancements may also attract further investments and partnerships, reinforcing NextEra's commitment to innovation.

In November 2025, Duke Energy (US) unveiled a comprehensive plan to invest $10 billion in renewable energy projects over the next five years. This initiative underscores the company's dedication to expanding its renewable energy capacity and reducing carbon emissions. By committing substantial resources to this endeavor, Duke Energy is poised to enhance its competitive edge while contributing to the broader goal of achieving net-zero emissions by 2050.

In October 2025, Exelon Corporation (US) completed the acquisition of a regional solar developer, significantly expanding its renewable energy portfolio. This acquisition is strategically important as it not only increases Exelon's solar capacity but also diversifies its energy mix, aligning with its long-term sustainability goals. The integration of this new asset is expected to enhance operational synergies and accelerate Exelon's transition towards a cleaner energy future.

As of January 2026, current trends in the Renewable Energy Market indicate a strong emphasis on digitalization, sustainability, and the integration of artificial intelligence (AI) into operational frameworks. Strategic alliances are increasingly shaping the competitive landscape, as companies collaborate to enhance technological capabilities and market reach. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition to a focus on innovation, advanced technology, and supply chain reliability. This shift suggests that companies that prioritize these elements will be better positioned to thrive in an increasingly complex and competitive environment.

Key Companies in the US Renewables Energy Market include

Future Outlook

US Renewables Energy Market Future Outlook

The US Renewable Energy Market is projected to grow at a 7.36% CAGR from 2025 to 2035, driven by technological advancements, regulatory support, and increasing demand for sustainable energy solutions.

New opportunities lie in:

  • Expansion of energy storage solutions for grid stability.
  • Development of offshore wind farms along the East Coast.
  • Investment in solar panel recycling technologies to enhance sustainability.

By 2035, the market is expected to be robust, driven by innovation and increased adoption of renewable technologies.

Market Segmentation

US Renewables Energy Market End Use Outlook

  • Residential
  • Commercial
  • Industrial
  • Utility
  • Agricultural

US Renewables Energy Market Application Outlook

  • Electricity Generation
  • Heating
  • Transportation
  • Energy Storage
  • Desalination

US Renewables Energy Market Energy Source Outlook

  • Solar Energy
  • Wind Energy
  • Hydropower
  • Geothermal Energy
  • Biomass Energy

Report Scope

MARKET SIZE 2024128.0(USD Billion)
MARKET SIZE 2025138.4(USD Billion)
MARKET SIZE 2035279.68(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)7.36% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledNextEra Energy (US), Duke Energy (US), Exelon Corporation (US), Pacific Gas and Electric Company (US), Southern Company (US), First Solar (US), Nextera Energy Resources (US), Orsted North America (US), Enphase Energy (US)
Segments CoveredApplication, Energy Source, End Use
Key Market OpportunitiesExpansion of solar energy infrastructure driven by favorable regulatory policies and consumer demand for sustainability.
Key Market DynamicsGrowing regulatory support and technological advancements drive rapid expansion of the US Renewable Energy Market.
Countries CoveredUS
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