The year proved to be a tumultuous one for the clean energy sector, highlighted by a blend of triumphs and setbacks. Under President Donald Trump’s administration, efforts were made to promote fossil fuels while simultaneously hindering advancements in wind and solar energy, according to a diverse group of energy developers, experts, and politicians.

A survey conducted by The Associated Press revealed that 2025 brought numerous challenges and uncertainties for clean energy. Despite these obstacles, there were notable strides made as new projects successfully integrated with the electrical grid. Industry insiders emphasized the necessity for continued growth in clean energy to satisfy the increasing demand for electricity, driven by the expansion of data centers and the need to reduce utility costs for American consumers.

Jorge Vargas, a prominent solar developer and operator, described the year as particularly difficult for the renewable energy sector. Trump’s frequent criticisms of renewable resources and the Republican-led passage of a tax and spending bill in July, which significantly curtailed tax incentives for clean energy, contributed to this struggle.

“There was definitely a cooling effect this year,” noted Vargas, who is also the cofounder and CEO of Aspen Power. “However, our industry is built on resilience.”

Jose Luis Crespo, President of Plug Power, remarked that the year’s policy shifts and technological advancements will influence the future direction of clean energy for many years. These developments underscore the industry’s adaptability and potential for growth amidst challenging circumstances.

Energy policy whiplash in 2025

Much of clean energy’s fate in 2025 was driven by booster Joe Biden’s exit from the White House.

The year began with ample federal subsidies for clean energy technologies, a growing number of U.S.-based companies making parts and materials for projects and a lot of demand from states and corporations, said Tom Harper, partner at global consultant Baringa.

It ends with subsidies stripped back, a weakened supply chain, higher costs from tariffs and some customers questioning their commitment to clean energy, Harper said. He described the year as “paradigm shifting.”

Trump called wind and solar power “the scam of the century” and vowed not to approve new projects. The federal government canceled grants for hundreds of projects.

The Republicans’ tax bill reversed or steeply curtailed clean energy programs established through the Democrats’ flagship climate and health care bill in 2022. Wayne Winegarden, at the Pacific Research Institute think tank, said the time has come for alternative energy to demonstrate viability without subsidies. ( Fossil fuels also receive subsidies.)

Many energy executives said this was the most consequential policy shift. The bill reshaped the economics of clean energy projects, drove a rush to start construction before incentives expire and forced developers to reassess their strategies for acquiring parts and materials, Lennart Hinrichs said. He leads the expansion of TWAICE in the Americas, providing analytics software for battery energy storage systems.

Companies can’t make billion-dollar investments with so much policy uncertainty, said American Clean Power Association CEO Jason Grumet.

Consequently, greenhouse gas emissions will fall at a much lower rate than previously projected in the U.S., said Brian Murray, director of the Nicholas Institute for Energy, Environment and Sustainability at Duke University.

Still, solar and battery storage are booming

Solar and storage accounted for 85% of the new power added to the grid in the first nine months of the Trump administration, according to Wood Mackenzie research.

That’s because the economics remain strong, demand is high and the technologies can be deployed quickly, said Mike Hall, CEO of Anza Renewables.

Solar energy company Sol Systems said it had a record year as it brought its largest utility-scale project online and grew its business. The energy storage systems company CMBlu Energy said storage clearly stands out as a winner this year too, moving from optional to essential.

“Trump’s effort to manipulate government regulation to harm clean energy just isn’t enough to offset the natural advantages that clean energy has,” Democratic U.S. Sen. Sheldon Whitehouse said. “The direction is still all good.”

The Solar Energy Industries Association said that no matter the policies in Washington, solar and storage will grow as the backbone of the nation’s energy future.

Nuclear and geothermal had a good year, too

Democrats and Republicans have supported investing to keep nuclear reactors online, restart previously closed reactors and deploy new, advanced reactor designs. Nuclear power is a carbon-free source of electricity, though not typically labeled as green energy like other renewables.

“Who had ‘restart Three Mile Island’ on their 2025 Bingo card?” questioned Baringa partner David Shepheard. The Pennsylvania plant was the site of the nation’s worst commercial nuclear power accident, in 1979. The Energy Department is loaning $1 billion to help finance a restart.

Everyone loves nuclear, said Darrin Kayser, executive vice president at Edelman. It helps that the technology for small, modular reactors is starting to come to fruition, Kayser added.

Benton Arnett, a senior director at the Nuclear Energy Institute, said that as the need for clean, reliable power intensifies, “we will look back on the actions being taken now as laying the foundation.”

The Trump administration also supports geothermal energy, and the tax bill largely preserved geothermal tax credits. The Geothermal Rising association said technologies continue to mature and produce, making 2025 a breakthrough year.

Offshore wind had a terrible year

Momentum for offshore wind in the United States came to a grinding halt just as the industry was starting to gain traction, said Joey Lange, a senior managing director at Trio, a global sustainability and energy advisory company.

The Trump administration stopped construction on major offshore wind farms, revoked wind energy permits and paused permitting, canceled plans to use large areas of federal waters for new offshore wind development and stopped federal funding for offshore wind projects.

That has decimated the projects, developers and tech innovators, and no one in wind is raising or spending capital, said Eric Fischgrund, founder and CEO at FischTank PR. Still, Fischgrund said he remains optimistic because the world is transitioning to cleaner energy.

More clean energy needed in 2026

An energy strategy with a diverse mix of sources is the only way forward as demand grows from data centers and other sources, and as people demand affordable, reliable electricity, said former Democratic Sen. Mary Landrieu. Landrieu, now with Natural Allies for a Clean Energy Future, said promoting or punishing specific energy technologies on ideological grounds is unsustainable.

Experts expect solar and battery storage to continue growing in 2026 to add a lot of power to the grid quickly and cheaply. The market will continue to ensure that most new electricity is renewable, said Amanda Levin, policy analysis director at the Natural Resources Defense Council.

Hillary Bright, executive director of Turn Forward, thinks offshore wind will still play an important role too. It is both ready and needed to help address the demand for electricity in the new year, which will become increasingly clear “to all audiences,” she said. Turn Forward advocates for offshore wind.

That skyrocketing demand “is shaking up the political calculus that drove the administration’s early policy decisions around renewables,” she said.

BlueWave CEO Sean Finnerty thinks that states, feeling the pressure to deliver affordable, reliable electricity, will increasingly drive clean energy momentum in 2026 by streamlining permitting and the process of connecting to the grid, and by reducing costs for things like permits and fees.

Ed Gunn, Lunar Energy’s vice president for revenue, said the industry has weathered tough years before.

“The fundamentals are unchanged,” Gunn said, “there is massive value in clean energy.”

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