US electricity 2025: Solar continues growth, coal still up

Recent data from the US Energy Information Agency reveals significant trends in electricity generation for the first half of 2025. As power consumption begins to stabilize after a notable increase earlier in the year, the growth rate of coal usage is also declining. The shift towards renewable energy sources is evident, particularly in solar power, which is on track to surpass hydroelectric generation by the end of the year. Historically, electricity consumption in the US has remained relatively constant. However, a recent uptick in energy demand has been observed, largely attributed to the rising operational needs of data centers. Earlier figures indicated a year-over-year electricity demand increase of approximately five percent, but this growth has tapered off, resulting in a three percent rise in total demand from January to June. This reduction in demand has had a notable impact on coal consumption. Earlier in the year, coal use surged by about 20 percent compared to the previous year; however, this figure has now decreased to just under 17 percent. While any increase in coal usage poses environmental and health challenges, the deceleration of growth is a positive sign. It’s worth mentioning that regulatory decisions, including the continuation of a coal plant that was slated for closure, have influenced this scenario. The solar sector, on the other hand, has experienced a remarkable growth of nearly 40 percent. It is anticipated that solar energy will dominate the new generating capacity installations this year. In terms of output, the increase in solar generation, approximately 40 Terawatt-hours (TW-hr), is nearly balancing the rise in coal generation, which stands at 50 TW-hr. Additionally, natural gas generation has shown a decrease of 32 TW-hr compared to the same timeframe last year, yet it remains the largest source of electricity generation in the US, reflecting only a modest year-over-year change of 3.7 percent.