State of the US Clean Energy Transition: Recent Progress, and What Comes Next

The U.S. clean energy sector saw record growth in 2023, particularly in solar installations and EV sales, supported by the Inflation Reduction Act and Bipartisan Infrastructure Law. However, the transition faces significant headwinds from rising interest rates, supply chain shortages for transformers, and a lagging transmission system. To meet 2035 carbon-free electricity goals, annual renewable installation rates must nearly double, and transmission capacity may need to double or triple.

• Solar energy experienced record growth in 2023, with 31 GW of capacity installed, representing a roughly 55% increase over 2022. Solar was the fastest-growing power source in the U.S., accounting for half of all new utility-scale generating capacity through the third quarter of 2023.
• Electric vehicle (EV) sales reached a record 1.2 million units in 2023, which accounted for 7.6% of total vehicle sales. This is an increase from 5.9% in 2022, with the fourth quarter of 2023 seeing a 40% increase in sales compared to the same period in 2022.
• The U.S. is seeing an unprecedented surge in planned domestic clean energy manufacturing due to the Inflation Reduction Act. As of early 2024, 113 manufacturing facilities or expansions have been announced since August 2022, representing $421 billion in investment.
• Supply chain issues, specifically for transformers, are significantly delaying projects. Lead times for large transformers and associated equipment have increased from 50 weeks to between 80 and 210 weeks as of the end of 2023, with domestic supply meeting only about 20% of U.S. demand.
• Rising interest rates have increased the cost of capital, leading to higher prices for power purchase agreements (PPAs). By the third quarter of 2023, solar PPA prices rose 21% year over year, wind PPA prices rose 16%, and blended PPA prices rose 18%.
• The offshore wind sector has faced acute challenges, with delays and cancellations affecting about half of the U.S. pipeline in 2023. While the Biden administration set a goal of 30 GW by 2030, BNEF estimates only about 14.5 GW may come online by that date.
• Transmission capacity is a critical bottleneck; current major projects represent only about 10% of the needed investment. To meet 2035 clean energy goals, transmission capacity may need to double or triple, and interregional transfer capacity may need to quadruple.

APA

Bird, L., & Womble, J. (2024). State of the US Clean Energy Transition: Recent Progress, and What Comes Next. World Resources Institute. https://files.wri.org/d8/s3fs-public/2025-02/growth-renewable-energy-article-february-2024.pdf

Chicago

Bird, Lori, and Joseph Womble. State of the US Clean Energy Transition: Recent Progress, and What Comes Next. World Resources Institute, 2024. https://files.wri.org/d8/s3fs-public/2025-02/growth-renewable-energy-article-february-2024.pdf.

Wikipedia

{{cite report |last1=Bird |first1=Lori |last2=Womble |first2=Joseph |title=State of the US Clean Energy Transition: Recent Progress, and What Comes Next |publisher=World Resources Institute |date=7 February 2024 |url=https://files.wri.org/d8/s3fs-public/2025-02/growth-renewable-energy-article-february-2024.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bird2024state, author = {Bird, Lori and Womble, Joseph}, title = {{State of the US Clean Energy Transition: Recent Progress, and What Comes Next}}, institution = {World Resources Institute}, year = {2024}, month = feb, url = {https://files.wri.org/d8/s3fs-public/2025-02/growth-renewable-energy-article-february-2024.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }