Solar and wind overtakes coal as the US shifts to renewables
America is witnessing a significant disruption in its energy landscape
The US has seen a steady decline in coal usage and a spike in renewable energy sources, a study shows.
While the US federal government is now taking a sharp turn away from clean energy under President Trump, solar and wind produced more electricity than coal in 2024, according to a new report from energy think tank Ember.
March data from the US Energy Information Administration (EIA) showed the solar and wind reached an all-time high of 83 terawatt hours (TWh), or 24.4% share of the total power mix.
Renewables surpass coal
In a first, combined solar and wind energy generated more electricity than coal in the US, accounting for 17% of the nation’s electricity compared to coal’s 15%.
This historic shift saw solar energy leading the growth with a 27% year-on-year increase, followed by wind at 7%.
Power generation
EIA data shows that solar grew the fastest in 2024, accounting for 81% of added annual power generation capacity, as utility-scale solar project grew by a record 31 gigawatts (GW).
It takes about 1.9 million photovoltaic panels to generate 1GW of power.
And while China dominates the industry, US manufacturing capacity for solar modules grew a whopping 190% domestically in 2024.
The 2024 gains for clean power show that market forces could keep momentum going despite Trump’s U-turn on renewables.
Coal’s role decreasing
Coal's decline is part of a broader trend observed across OECD countries, where coal generation fell to just 17% of total electricity generation in 2023, down from 36% at its peak in 2007.
Fossil fuels fall below 50%
March 2025 also saw fossil fuels contribute less than 50% to the US electricity mix for the first time on record, dropping to 49.2% from 57% the previous month.
This milestone was driven by a significant rise — nearly 25% — in wind and solar energy generation.
Drivers of the transition
Several factors are accelerating this shift:
Economic viability: The decreasing costs of renewable technologies and battery storage make them more competitive.
Policy support: Government initiatives and incentives are promoting clean energy adoption.
Environmental concerns: Growing awareness of climate change impacts is influencing energy choices.
[Source: Ember Climate]
Implications for coal
The decline in coal usage has significant implications for coal-dependent companies.
For instance, Peabody Energy Corp. is experiencing market pressures as demand shifts. As of April 30, 2025, BTU's stock price is $12.81, reflecting the industry's challenges.
Looking ahead
The US energy sector is poised for continued disruption as demand for electricity grows after 14 years of staying nearly flat, as per the Ember report.
With plans to add 32 gigawatts of solar capacity in 2025, solar generation could see a 33% boost, as per the US Department of Energy.
Sign up for the Daily Briefing
Get the latest news and updates straight to your inbox
