2024 saw significant demand growth, particularly benefiting renewable energy sources. With record public and private investment, alongside surging demand for clean energy solutions, renewable energy innovation solidified its role as a primary driver of the power generation sector. This momentum sets the stage for continued opportunities as we move into 2025.

Utility-scale solar and wind capacity additions dominated new builds and expansions, accounting for an impressive 90% of all capacity growth in the first nine months of 2024, compared to 57% in 2023, as reported by KE Andrews analysis of FERC data. The year also revealed key shifts across the renewable landscape:

  • Solar Power: Solar capacity soared by 88%, adding 18.6 GW and surpassing both hydropower and nuclear to become the fourth-largest source of installed capacity after wind.
  • Wind Power: Despite supply chain, financing, and permitting challenges causing a 14% dip in capacity additions to 2.6 GW, wind generation reached a historic milestone by surpassing coal-fired generation for two consecutive months.
  • Battery Storage: Storage solutions continued to boom, growing 64% to 7.4 GW, reinforcing their critical role in grid reliability and efficiency. Batteries are increasingly used to store excess wind and solar generation, supporting the grid alongside traditional applications like arbitrage and frequency regulation.

The momentum doesn’t stop there. By the end of 2024, the EIA (Energy Information Administration) projected record-breaking growth for solar (38.4 GW) and battery storage (14.9 GW), while wind was expected to climb by 6.5 GW to reach a total capacity of 153.8 GW. Additionally, residential solar storage attachment rates were on track to hit a record 25%, up from 14% in 2023. These figures reflect a market that is not only expanding but evolving to meet complex and growing energy demands

What’s Driving the Next Phase of Renewable Energy Growth?

While the foundation of renewables remains strong, the future’s growth will rely on industry innovation, evolving policies, and shifting energy demand from key sectors. Three industries stand at the forefront of driving this next phase:

  1. Cleantech Manufacturing: The reshoring of cleantech plants is reshaping supply chains for solar panels and battery storage, reducing costs and reinforcing energy security. These facilities are major energy consumers, adding up to 11 GW of power demand by 2030, while bolstering domestic infrastructure.
  2. Artificial Intelligence (AI) and Data Centers: The rapid adoption of generative AI has accelerated energy demand from data centers. KE Andrews projects that data centers could drive 44 GW of additional demand by 2030, more than doubling current levels. AI is not just driving demand; it is also optimizing renewable supply chains, accelerating operational efficiencies, and improving technology deployment.
  3. Carbon Markets and Direct Air Capture (DAC): Carbon capture technologies are unlocking additional value streams for renewables. DAC plants alone are expected to generate 2.7 GW of demand by 2030. Meanwhile, carbon markets provide opportunities for renewable projects to monetize carbon attributes, adding financial incentives to clean energy investments.

Combined, these forces represent over 57 GW of incremental demand by 2030, a figure that renewables are uniquely positioned to address. Their technological maturity, low cost, and high modularity make them the frontrunners in filling this resource gap compared to other clean generation options.

Key Challenges and Opportunities for 2025

While the trajectory for renewable energy innovation is clear, the path forward is not without challenges. Supply chain disruptions, permitting delays, and financing hurdles remain key pain points for developers. Additionally, new federal policies stemming from a change in administration could introduce uncertainty around incentives and regulatory frameworks.

However, the opportunities outweigh these obstacles. Advances in AI-driven supply chain optimization, rapid deployment of domestic manufacturing, and the monetization of carbon attributes will help renewable energy providers overcome existing constraints and scale solutions to meet demand.

For KE Andrews and its clients, the continued growth of renewables presents both a strategic imperative and a significant opportunity. Property tax strategy, cost optimization, and proactive financial planning will be essential tools as renewable energy projects navigate evolving valuations and regulatory landscapes.

Positioning for the Future

The growth of solar, wind, and battery storage has been nothing short of transformative in 2024, and 2025 holds the promise of even greater innovation and scale. By understanding the forces driving demand, addressing key challenges, and leveraging opportunities in cleantech manufacturing, AI, and carbon markets, we can play a pivotal role in shaping a cleaner, more resilient energy future.

At KE Andrews, we are committed to helping our clients navigate the complexities of property tax management and incentives in this rapidly shifting energy landscape. As demand for clean energy continues to surge, renewable energy developers, manufacturers, and investors must align their strategies to capitalize on emerging trends while mitigating risks.

For more information on how KE Andrews can support your renewable energy projects, contact us today.



By: Mike Fry, KE Andrews