Strong growth! EIA predicts 79GW of new photovoltaic systems in the U.S. by 2025

According to the U.S. Energy Information Administration (EIA), photovoltaic power generation will be the main source of growth in the U.S. electricity industry by the end of 2025, with 79GW of photovoltaic systems expected to come online in the next two years.

In the latest "Short-term Energy Outlook" report released recently, the U.S. Energy Information Administration predicts that by the end of 2025, the share of renewable energy power generation in total U.S. power generation will rise to 26%, while natural gas power generation will increase from 2023 to 26%. 42% dropped to 41% in 2025.

The U.S. Energy Information Administration states that the U.S. photovoltaic industry is growing rapidly. The United States is expected to add 36GW of photovoltaic systems this year and 43GW by 2025.

The agency said: "The newly installed photovoltaic system capacity in the past two years will increase its share of total U.S. power generation from 4% in 2023 to 6% in 2024 and 7% in 2025. We predict that in 2024 Total U.S. electricity generation will grow by 3% and remain unchanged through 2025."

The U.S. Energy Information Administration predicts that U.S. installed photovoltaic system capacity will increase to 131GW by 2024 and then climb to 174GW by 2025. By comparison, U.S. natural gas-fired power generation capacity is expected to remain at 489 GW in 2024 before increasing slightly to 492 GW in 2025.

Although natural gas and crude oil production growth is expected to begin to slow, both have recently reached record highs. U.S. crude oil and natural gas production will set new annual records even as growth slows, the U.S. Energy Information Administration said.

However, U.S. coal production and consumption are expected to fall to their lowest levels since the early 1960s, the agency said. The decline in coal consumption is due to lower demand from the power sector and a consequent decline in coal production.

The agency expects the installed capacity of battery energy storage systems in the United States to nearly double this year, from 17GW to 31GW, with growth expected to slow thereafter, with the installed capacity of battery energy storage systems reaching 40GW by 2025.

A report released by the Photovoltaic Industry Association and Wood Mackenzie in December predicted that growth in installed photovoltaic system capacity will begin to decline in 2026 after a period of strong growth. Michelle Davis, director of photovoltaic research at Wood Mackenzie and lead author of the report, said, "This is because the various challenges faced by photovoltaic systems, such as grid connection constraints, have become more severe."

The U.S. Energy Information Administration stated in November last year that the installed capacity of photovoltaic systems in the United States has grown exponentially in recent years. From 2009 to 2022, the installed capacity of photovoltaic systems will increase by an average of 44% per year.