US adds 11.7 GW of clean energy capacity in Q3, long-term uncertainty remains

The US clean energy industry had a strong third quarter adding 11.695 GW of capacity, while the American Clean Power Association warns of lingering policy and regulatory uncertainty that put future growth at risk.

The Q3 clean energy additions increased 14% year over year, according to a Dec. 4 ACP statement. Strong momentum and policy tailwinds have supported the industry over the last several years, ACP said.

"The third quarter's record results mask an unstable policy environment that is threatening our ability to meet our future energy needs," ACP CEO Jason Grumet said in a statement. "The policy chaos at the federal level has seeped into every part of project timelines, stalling growth precisely when we need to meet demand and keep energy prices affordable for American families and businesses."

Battery storage additions reached a Q3 record high of 4.7 GW, while land-based wind increased 131% year over year with 1.027 GW added in Q3, according to ACP's Q3 report. Solar had the most capacity installed in Q3 with 5.982 GW.

Through Q3, 30.9 GW of clean energy power generation was connected to the grid this year, up 1 GW from the current top year of 2024 for clean energy installation.

The clean power pipeline reached a new high of 186.185 GW by the end of September, growing 9% year over year, according to ACP. However, the pipeline expanded only 1% from the first quarter of 2025.

PPAs on the decline

"Demand from AI, data centers and onshoring manufacturing is set to push US electricity needs to all-time highs next year," Grumet said. "With swift policy action, this demand can be met with domestic clean energy, supporting U.S. competitiveness in the race for these new technologies."

Despite record Q3 additions, ACP said the forward-looking indicators tell a more concerning story with power purchase agreements down 31% year over year, pushing the year-to-date total for all offtake types 38% below the same point last year.

"The year-on-year decline in PPA contracting is a little surprising given the huge demand we know is out there for clean energy and the limited window to lock in expiring tax credits," said Sam Huntington, director on the North American power team with S&P Global CERA. "On the other hand, it makes sense that offtakers are waiting for guidance on [foreign-entity-of-concern rules] and transferability - I'd expect a surge of deals when that guidance does come out."

S&P Global Energy's latest North American Clean Energy Procurement Market Briefing also shows a steep decline in announced contracted volumes compared to both a year ago and the prior quarters, with August in particular seeing volumes below 1 GW, marking the lowest monthly level in recent memory, said Bruno Brunetti, head of renewables revenue streams at S&P Global Energy Horizons.

"The One Big Beautiful Bill Act triggered a disruption in the US clean energy finance toolkit, with both developers and offtakers reassessing project economics, risks and value in the PPA market," Brunetti said. "We believe the market has contracted only about half of the expected 2027 wind and solar generation."

Data centers remain the most active offtakers so far in 2025, representing over 75% of the PPA market this year, Brunetti said, adding that data centers traditionally have accounted for about half of the corporate deals. Meta has been the largest offtaker in the US in 2025, followed by Amazon, he added.