The US clean electricity transition continued as wind power and solar generated more than coal for the first time. Electricity demand growth sped up and solar generation rose more quickly than gas to help meet it.
In 2024, wind and solar together generated more electricity than coal for the first time in the US, while solar rose more than gas to meet increased demand growth.
The United States’ shift towards clean electricity continued in 2024, as wind and solar together rose to 17% of total electricity generation, surpassing coal, which dropped to an all-time low of 15%.
After nearly 14 years of stagnation, electricity demand is now firmly rising. It increased by 3%, marking the fifth-highest rise this century, partly as a rebound to a milder summer in 2023, when electricity demand fell by 1.3%. Rising demand drove an increase in gas generation, which grew three times more than the decline in coal, increasing power sector CO2 emissions.
However, solar generation met more of the rise in electricity demand and fall in coal than gas did. Solar (+64 TWh) added more generation than gas (+59 TWh) and together with wind (+32 TWh), contributed to the continued decline of coal (-22 TWh) and meeting high electricity demand growth (+128 TWh). It remained the fastest-growing source of electricity, with its generation rising by 27% in 2024, surpassing hydro generation for the time.
The expansion of solar and wind helped limit the increase in gas generation. Without solar and wind growth, gas would have needed to rise by 9%— more than double its actual increase (3.3%)— to meet rising demand and coal’s small decline.
Although there was a slight rise in overall fossil generation and CO2 emissions (+0.7%), the rise in power demand was much faster than the rise in power sector emissions making per unit electricity the cleanest it has ever been.
Key takeaways
01
Wind and solar combined overtake coal for the first time ever
In 2024, wind and solar reached a record 17% (757 TWh) of US electricity, overtaking coal for the first time, which dropped to a historic low of 15% (653 TWh). Just six years ago, in 2018, coal was three times larger than the combined total of wind and solar. Solar generation boomed in 2024, rising by 27%, while wind rose by 7% and coal fell by 3.3%. Since the peak of US coal power in 2007, wind and solar have overtaken coal in 24 states, with Illinois the latest to join the ranks in 2024, following Arizona, Colorado, Florida and Maryland in 2023.
02
The rise of batteries unlocks record solar growth
California and Nevada both surpassed 30% annual share of solar in their electricity mix for the first time (32% and 30% respectively). California’s battery growth was key to its solar success. It installed 20% more battery capacity than it did solar capacity, which helped it transfer a significant share of its daytime solar to the evening. Nationwide, solar made up 81% of all new annual capacity additions, with a record increase of 31 GW at utility scale, supported by a record 10 GW of battery – equivalent to 1 GW of battery for every 3 GW of solar. Texas installed more solar (7.4 GW) and battery capacity (3.9 GW) than even California. Yet the growth of solar was uneven – 28 states generated less than 5% of their electricity from solar in 2024, highlighting significant untapped potential – even before adding battery storage.
03
Gas and clean growth met rising electricity demand more than replacing coal
Gas generation rose by 3.3% (+59 TWh) in 2024, in line with the annual average rise of the previous ten years (+68 TWh), as its share of US electricity rose to a record 43%. However, unlike the previous decade, demand growth was the main driver of rising generation. 85% of the total growth in gas, solar and wind met rising electricity demand and 15% replaced the decline in coal generation. This resulted in the second smallest fall in coal generation since 2014. This is a significant shift from the previous ten years when 15% of gas, solar and wind growth met electricity demand growth and 85% met a fall in coal generation. States with the highest rise in gas generation were mostly those with the highest electricity demand growth. Virginia saw the biggest rise in gas generation. California saw the biggest fall in gas generation, as its clean generation grew even more than fast-rising electricity demand.
Since coal generation peaked in 2007, the US has made significant progress in its clean energy transition, leading to a 68% fall in coal and a 32% reduction in power sector emissions. However, the rise in electricity demand in 2024 slowed the decline of coal, as gas continued to grow. The small rise in fossil generation raises concerns that the historic era of falling power sector CO2 emissions is at risk of ending.
The country now faces a key challenge: ensuring its clean generation grows fast enough to meet rising demand. Unlike solar’s booming growth, wind added the least capacity in ten years and there is very little other clean capacity under development.
The transformation of the US energy system hinges on two key trends: the expansion of clean electricity generation and the electrification of energy demand. In 2024, electrified vehicles made up 20% of all new car sales, with full electric vehicles comprising 9%. Heat pump sales rose to account for 57% of new space heating installations. Meanwhile, retail electricity prices increased by 3.0% in 2024, in line with economywide inflation; commercial prices rose 2.1% and industrial prices rose only 1.4%. Several major grid expansion projects were proposed in 2024 to enhance resilience as electricity demand rises and renewables grow. Together, these shifts can enhance efficiency, improve affordability and strengthen energy security.
Now, the next stage of the US electricity transition will be about meeting growing electricity demand. Clean power can fulfil this without raising bills, sacrificing security of supply or further relying on gas.
