Renewables Surge to Nearly 28% of U.S. Electricity in 2025

The renewable energy sector continues to expand globally, defying resistance from some governments, including the Trump administration in the U.S. Recent data from the U.S. Energy Information Administration (EIA), reviewed by the SUN DAY Campaign, reveals that solar energy accounted for nearly 9% of total U.S. electrical generation in the first half of 2025. Combined, wind and solar produced over 20%, with all renewable energy resources generating nearly 28% of the nation’s electricity. Industry analysts predict that renewables will remain pivotal in U.S. power generation, despite potential slower growth, while countries like China and much of Europe accelerate their adoption of solar, wind, geothermal, and other renewable sources.

This momentum will be a focal point at the upcoming RE+ 2025 event in Las Vegas, Nevada, from September 8 to 11, and at POWER’s Experience POWER event in Denver, Colorado, from October 29 to 31. Rick Margolin, a director in the Renewables Advisory Group at ENGIE Impact, offers insights into how companies are navigating sustainability targets amid shifting energy policies.

Margolin notes that while a few high-profile companies have retreated from sustainability initiatives, most clients remain committed to their targets. The uncertainty in the energy landscape is driving companies to view renewables as a means to insulate themselves from anticipated energy cost increases and volatility. “We’re seeing more clients look to renewables to lock in power prices, gain budgetary certainty, and increase reliability in energy supply as competition for energy becomes fierce and the ability to add new generation sources is constrained,” Margolin explains.

The current market conditions remain favorable for renewable energy buyers primarily due to price and expediency. “Renewables in most markets offer some of the lowest cost energy available,” Margolin says. “Because renewables don’t have associated fuel costs, you can lock in your price and insulate yourself from the volatility that characterizes fuel-generated sources.” Additionally, renewables can be developed and deployed quickly, often within 12 to 18 months, compared to longer lead times for other utility-scale sources. This flexibility allows energy buyers to generate their own systems or engage in power purchase contracts with renewables developers.

To make the most of the limited window for cost-effective clean energy deals, Margolin advises organizations to align their internal teams. “The number one obstacle we see is lack of internal cohesion,” he says. “Energy buyers need their sustainability group, facilities, procurement, accounting, finance, and tax teams aligned, ensuring everybody knows the objective and that all constraints and abilities are incorporated into a buying plan with C-Suite buy-in.”

ENGIE Impact helps clients identify the best deals and lock in renewable energy contracts by understanding their sustainability goals and operational needs. “We develop roadmaps and strategies where, once we understand their portfolio and operations, we present available marketplace options,” Margolin explains. “This enables us to recommend three or four pathways worth pursuing.” The firm then works on internal buy-in, origination, and negotiation, ensuring clients receive the best possible terms.

Delaying procurement poses significant risks, including losing incentive opportunities and exposure to rising energy prices. “The biggest risk right now is losing incentive opportunities,” Margolin warns. “Federal investment and production tax credits are being phased out, and to qualify before they’re eliminated, you need projects that meet certain deadlines. Delays risk missing incentives, which could drive project costs significantly higher.”

Margolin advises that existing wind or solar power purchase agreements should be evaluated as market conditions evolve. “Energy buyers should understand where markets are heading, then evaluate existing contracts for any that might work against them,” he says. “You need to understand all the contributing factors, not just accept that prices will rise.”

There is an uptick in clean energy storage projects and deals, given their continued favor. Companies with aligned internal teams are expediting the signing of more deals in 2025 to meet accelerated deadlines for project starts. “Projects beginning construction before July 4, 2026, can qualify for full tax credits,” Margolin notes. “Projects that can’t meet that deadline but come online by end of 2027 can still qualify. The rush is to secure projects with prospects of being online or under construction to capture those credits.”

As the renewable energy sector continues to evolve, the insights from industry experts like Rick Margolin highlight the strategic importance of aligning internal teams, understanding market conditions, and acting swiftly to secure cost-effective clean energy deals. The upcoming RE+ 2025 and Experience POWER events will provide platforms for further discussion and collaboration on these critical topics.

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