Key facts
- US power consumption is expected to grow 39% by 2035, driven by data centers and electrification.
- New solar and wind energy projects can be developed in under two years, compared to at least three years for gas projects.
- Solar and wind power can be sold for as little as $38 and $37 per megawatt-hour, respectively.
- Consumer investment in residential solar, batteries, and EVs rose 45% in Q2 2026.
- US courts have blocked multiple attempts by the Trump administration to halt wind project construction.
Despite efforts by the Trump administration to curb clean energy development, the sector is experiencing significant growth, driven by increasing electricity demand and the cost-effectiveness of renewable sources. Consultancy ICF projects US power consumption to rise 39 percent by 2035, fueled by energy-intensive data centers and the electrification of transportation and appliances. This marks a significant shift after a decade of steady demand.
Solar and wind power are emerging as the quickest and most economical options for grid expansion. According to RMI, new solar and wind sites can be developed in under two years, considerably faster than the three-year minimum for gas projects. Investment bank Lazard indicates that producers can achieve break-even selling solar and wind power for as little as $38 and $37 per megawatt-hour, respectively, compared to at least $48 per megawatt-hour for gas. However, these figures do not encompass system upgrade and battery costs needed to manage intermittency.
Renewable power developers are poised to benefit further, with electricity prices expected to increase by 40 to 120 percent once subsidies from the Inflation Reduction Act expire. Ethan Zindler, head of country and policy research at BloombergNEF, noted that it is a favorable time for developers due to the urgent need for power by data centers.
Extreme weather events and geopolitical tensions, such as the conflict involving Iran, have also contributed to the sector's expansion. In the second quarter of 2026, consumer investment in residential solar panels, batteries, and zero-emission vehicles led clean energy spending, increasing by 45 percent from the previous quarter and 21 percent from the same period in 2025, according to researcher Rhodium Group. Hannah Hess, a director at Rhodium's energy and climate practice, highlighted that residents in areas prone to hurricanes are installing home batteries, and higher fuel prices due to the Iran conflict are driving purchases of electric and hybrid vehicles.
US courts have largely thwarted the Trump administration's attempts to impede green energy projects. A district court judge in Oregon recently ordered the Pentagon to cease blocking onshore wind development, and all five of the administration's efforts to halt construction of wind projects off the US East Coast have been blocked by the courts. Developers have also found some success lobbying the administration directly, with individuals connected to the administration advocating for specific projects. A key argument used is that these projects will not displace fossil fuels, which are preferred by the Trump administration. Cliff Graham, chief executive at clean energy company Avantus, stated that the administration has been pragmatic regarding permits, noting that large, undeveloped areas are well-suited for solar-plus-storage solutions.