United States Renewable Energy Market Expands Across Utilities, Residential, and Commercial Segments to 778.78 GW by 2031

The United States renewable energy market size projected to increase from 545.16 GW in 2026 to 778.78 GW by 2031. This represents a compound annual growth rate (CAGR) of 7.38% during the forecast period. Rising federal support, including long-term investment and production tax credits under the Inflation Reduction Act, has created a stable investment environment.

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Solar energy holds the largest share of the market, accounting for over 40% of installed capacity, while wind energy continues to provide a reliable backbone for renewable supply. The expansion of energy storage technologies is enabling greater grid flexibility and reliability.

Emerging Trends in the United States Renewable Energy Market

Federal Incentives and Tax Credits

Long-term certainty through 2032 for solar investment tax credits and wind production tax credits is encouraging continuous project development. Domestic content bonuses and layered manufacturing credits are boosting domestic production, particularly for solar panels and wind turbines, which strengthens the US renewable energy market's supply chain resilience.

Falling Levelized Costs of Energy (LCOE)

Utility-scale solar costs have fallen to under USD 0.05 per kWh, and onshore wind to approximately USD 0.033 per kWh, making renewable electricity increasingly competitive with fossil fuels. These lower costs encourage corporate off-takers to secure long-term contracts, further accelerating market expansion.

Corporate Renewable Energy Procurement

In 2024, corporate renewable energy purchases reached nearly 24 GW, with companies like Amazon, Google, and Meta leading the adoption of 24/7 carbon-free supply models. Virtual power purchase agreements (VPPAs) allow buyers to acquire new renewable capacity across different grid regions, diversifying the customer base and strengthening market momentum.

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United States Renewable Energy Market Segmentation Overview

By Technology:

Solar Energy (PV and CSP) - Leading the market with more than 40% share, solar paired with storage enables reliable peaking capacity and improves revenue certainty. Innovations like agrivoltaics are helping optimize land use while supporting farmer income.

Wind Energy (Onshore and Offshore) - Onshore wind continues to anchor many portfolios, while offshore wind is gaining traction in the Northeast and Mid-Atlantic, supported by federal lease auctions and state targets.

Hydropower (Small, Large, PSH) - Provides stable baseload generation but faces slower growth due to higher upfront costs.

Bioenergy - Supports distributed generation and industrial energy requirements.

Geothermal and Ocean Energy (Tidal and Wave) - Emerging resources with moderate baselines, but pilot projects indicate potential for scalable integration once costs improve.

By End-User:

Utilities - Account for the majority of installed capacity, leveraging large-scale projects to maintain cost advantages.

Commercial and Industrial - Secure long-term contracts to manage energy costs and carbon commitments, contributing to market stability.

Residential - Experiencing the fastest growth, with rooftop solar combined with batteries becoming increasingly common. Community solar programs also expand access for renters and properties unsuitable for traditional installations.

Major Market Participants in the United States Renewable Energy Market

>Vestas Wind Systems A/S
>General Electric Company
>First Solar Inc.
>Siemens Gamesa Renewable Energy S.A.
>Sunrun Inc.

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Conclusion

The United States Renewable Energy Market is projected to grow steadily through 2031, fueled by supportive federal policies, falling technology costs, and rising adoption by corporate and residential users. Solar and wind continue to form the core of the market, while storage solutions and emerging sources like offshore wind, geothermal, and marine energy help diversify the energy mix.

As utilities adjust to distributed energy resources and commercial and residential segments expand, new revenue models and service opportunities are emerging. With the installed capacity expected to reach 778.78 GW by 2031, the United States Renewable Energy Industry offers strong prospects for investors, developers, and technology providers, supporting a cleaner, sustainable, and reliable energy future.

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https://www.mordorintelligence.com/industry-reports/power-market?utm_source=openpr

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