US Renewable Energy Transition Market Research Report By Energy Source (Solar Energy, Wind Energy, Hydropower, Biomass, Geothermal Energy), By Technology (Photovoltaic Technology, Concentrated Solar Power, Onshore Wind Turbines, Offshore Wind Turbines, Hydrokinetic Technology), By Application (Power Generation, Heating, Transportation, Industrial Processes) and By End Use (Residential, Commercial, Industrial) - Forecast to 2035

US Renewable Energy Transition Market Overview:

As per MRFR analysis, the US Renewable Energy Transition Market Size was estimated at 42.3 (USD Billion) in 2023. The US Renewable Energy Transition Market Industry is expected to grow from 46.32(USD Billion) in 2024 to 151.8 (USD Billion) by 2035. The US Renewable Energy Transition Market CAGR (growth rate) is expected to be around 11.395% during the forecast period (2025 - 2035).

Key US Renewable Energy Transition Market Trends Highlighted

The US Renewable Energy Transition Market is experiencing significant growth driven by key market drivers such as government policy support, technological advancements, and increasing public awareness regarding climate change. The federal and state governments have implemented various incentives and regulations aimed at reducing carbon emissions, including tax credits for renewable energy investments and mandates for clean energy adoption. As a result, there is a noticeable rise in wind, solar, and hydropower initiatives across the country.

Consumer preferences are also shifting toward sustainable energy solutions, leading to greater investment in renewable resources by both private and public sectors. Opportunities to be explored in this market include the expansion of energy storage technologies, which are essential for integrating renewables into the grid. Enhanced energy storage can help manage supply and demand more effectively, allowing for greater reliance on intermittent energy sources like wind and solar. Additionally, there is potential for increased collaboration between technology companies and utilities to develop smart grid solutions that can support a more resilient energy system.

Trends in recent times indicate a transition toward decentralized energy systems, such as community solar projects and microgrids. These systems allow local communities to generate and manage their own energy, improving access to renewable options and enhancing energy independence.Furthermore, the electrification of transportation is gaining momentum, with more electric vehicles entering the market. This trend highlights the importance of integrating renewable energy sources into the transportation sector to effectively reduce reliance on fossil fuels. The combination of these trends showcases a robust pathway for the US to achieve its renewable energy goals while addressing climate concerns.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

US Renewable Energy Transition Market Drivers

Government Policies and Incentives

The US Renewable Energy Transition Market Industry is significantly driven by favorable government policies and incentives aimed at promoting renewable energy. According to the US Energy Information Administration (EIA), federal tax credits, such as the Investment Tax Credit (ITC) and the Production Tax Credit (PTC), have substantially increased the installation of solar and wind energy projects across the nation. In 2021 alone, renewable energy sources accounted for nearly 20% of the total electricity generation in the United States.Furthermore, the Biden Administration has set a goal of achieving a carbon-free power sector by 2035, promoting policies that support investments in renewable technologies. As a result, approximately 100 billion USD in federal funding is projected to bolster clean energy development by 2030, propelling the market growth significantly in the upcoming years.

Technological Advancements

Rapid advancements in technology are another major driver for the US Renewable Energy Transition Market Industry. Improvements in solar panel efficiency and wind turbine performance have lowered the costs of renewable energy generation. For instance, the National Renewable Energy Laboratory (NREL) reported a 60% decrease in the cost of solar photovoltaic installations over the past decade. Moreover, innovations in energy storage technology, particularly lithium-ion battery systems, have enhanced the reliability and feasibility of renewable energy sources.As technology continues to evolve, it is estimated that the levelized cost of electricity from renewables will keep falling, further driving market expansion in the US.

Public Awareness and Environmental Concerns

Increasing public awareness of climate change and environmental degradation is fueling the growth of the US Renewable Energy Transition Market Industry. Surveys conducted by the Pew Research Center indicate that approximately 72% of Americans believe that the government should be doing more to address climate change. This rising public concern has driven demand for cleaner energy sources, leading to community-driven initiatives aimed at reducing fossil fuel dependency.Such public sentiment has been pivotal in encouraging state governments to adopt renewable portfolio standards, which require utility companies to source a specific percentage of their energy from renewable sources. Consequently, consumer preferences are shaping the market, fostering growth for clean energy solutions across the United States.

US Renewable Energy Transition Market Segment Insights:

Renewable Energy Transition Market Energy Source Insights

The Energy Source segment within the US Renewable Energy Transition Market represents a critical factor driving the nation toward sustainable energy solutions. This segment showcases a diverse range of energy sources, primarily comprising Solar Energy, Wind Energy, Hydropower, Biomass, and Geothermal Energy. Solar Energy, the most prominent source, has experienced rapid advancements in technology and a significant decrease in costs, making it an essential contributor to energy generation. California and Texas lead the way in solar installations, with an increasing number of homeowners and businesses adopting solar panels for their energy needs, thus highlighting the energy transition's momentum across the United States.

Wind Energy has also emerged as a dominant player in the renewable sector, with extensive wind farms being established across the Midwest and coastal regions. These projects not only supply clean energy but also create substantial economic opportunities through job generation in manufacturing and maintenance. Hydropower remains a steadfast source of renewable energy, with existing dams providing a reliable energy supply while showcasing the potential for upgrades and innovations, including small-scale hydropower systems.

Biomass Energy is gaining traction as a useful circular economy solution, converting waste into energy, thereby reducing landfill waste and greenhouse gas emissions. This energy source plays an essential role in rural economies, often utilizing agricultural residues or wood waste, thus supporting local jobs. Meanwhile, Geothermal Energy offers another sustainable option, primarily in regions like the western United States, leveraging the Earth’s heat for power generation and direct use applications. In addressing climate change and enhancing energy independence, the Energy Source segment in the US Renewable Energy Transition Market is gearing towards innovative technologies and infrastructure development.

The trends observed indicate that growth drivers such as regulatory support, consumer demand for cleaner energy, and advancements in energy storage technology will significantly influence the future landscape of this segment. Nevertheless, challenges exist, including the need for substantial infrastructure investments, land use conflicts, and public acceptance. Overall, the segment represents a vital foundation for the US’s renewable energy future, steering the country towards diverse energy options that align with sustainability goals and economic growth objectives.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Renewable Energy Transition Market Technology Insights

The Technology segment within the US Renewable Energy Transition Market is pivotal as it encompasses a variety of innovative solutions driving the shift towards sustainable energy. Photovoltaic Technology is vital due to its ability to harness sunlight directly, making it one of the leading sources of renewable energy in residential and commercial sectors. Concentrated Solar Power plays a significant role by using mirrors or lenses to concentrate sunlight, providing a reliable energy source during high-demand periods. Onshore and Offshore Wind Turbines are crucial for harnessing wind energy, with onshore turbines utilizing land-based sites and offshore turbines exploiting ocean winds, thereby maximizing energy output and efficiency.

Hydrokinetic Technology, which captures energy from water currents, is also gaining traction and is significant for its potential to contribute to energy generation in diverse water resources. The advancements in these technologies are supported by favorable government policies and increasing investments, which drive the capabilities and growth in the US Renewable Energy Transition Market. As each technology progresses, they collectively strengthen the market's infrastructure and sustainability goals, showcasing their importance in addressing climate change and reducing carbon footprints.

Renewable Energy Transition Market Application Insights

The Application segment within the US Renewable Energy Transition Market represents a crucial area for driving sustainable practices across various sectors. Power Generation is pivotal, utilizing renewable sources like wind and solar to reduce reliance on fossil fuels, thereby aligning with national energy goals. Heating technologies also play a significant role by enhancing energy efficiency and minimizing emissions in residential and commercial buildings. Transportation is increasingly transitioning towards electric and alternative fuel vehicles, addressing the urgent need to lower greenhouse gas emissions while promoting energy independence.

Similarly, Industrial Processes are increasingly adopting renewable energy solutions to improve operational efficiency and meet regulatory standards. These areas collectively contribute to shaping a sustainable future in the US, with significant advancements being witnessed due to technological innovations, supportive policies, and growing environmental consciousness among consumers.

The diverse applications of renewable energy not only contribute to economic growth but also help resolve major challenges such as climate change and energy security, highlighting the importance of each segment in the broader transition towards a low-carbon economy.The ongoing market growth is spurred by investment in infrastructure and technological advancements, indicating a transformative period for the US Renewable Energy Transition Market and its various applications.

Renewable Energy Transition Market End Use Insights

The US Renewable Energy Transition Market continues to expand across various End Use categories, emphasizing the growing shift towards sustainable energy solutions. The Residential sector plays a significant role as households increasingly adopt solar panels and energy-efficient appliances, driven by awareness of energy costs and environmental impacts. In the Commercial domain, businesses are integrating renewable sources to enhance sustainability while reducing operating expenses, which is vital in the current economic landscape.

The Industrial segment is also notable as many manufacturers are leveraging renewable energy to meet regulatory standards and improve their corporate image.As demand for clean energy solutions rises, these sectors contribute to the overall US Renewable Energy Transition Market revenue through significant investments and advancements. Factors like technological innovation, government incentives, and public support are driving market growth, while challenges such as infrastructure adaptation and initial costs remain relevant. This multi-faceted approach to renewable energy underpins the overall market dynamics and reflects a broader shift towards sustainable practices in the United States. Continued efforts in these segments promise to bolster the US Renewable Energy Transition Market statistics in the coming years.

US Renewable Energy Transition Market Key Players and Competitive Insights:

The US Renewable Energy Transition Market is characterized by a dynamic landscape featuring a wide array of competitors striving for supremacy in the growing sector of clean energy. The shift towards renewable energy sources has accelerated in recent years due to a combination of increasing environmental awareness, regulatory support, and technological advancements. This transition is not merely a response to climate change but also represents a significant economic opportunity for businesses willing to innovate and adapt.

Various players in the market, from utility-scale solar developers to wind energy providers and energy storage companies, are vying to capture market share, providing consumers with sustainable energy alternatives. The competitive insights reveal that organizations are investing significantly in research and development, forming strategic partnerships, and optimizing their supply chains to enhance their competitive edge.Iberdrola has established a solid presence in the US Renewable Energy Transition Market, primarily focusing on renewable energy generation.

The company is particularly strong in wind energy, having invested heavily in wind farms across multiple states, including both onshore and offshore projects. Its commitment to sustainability and reduction of greenhouse gas emissions has positioned Iberdrola as a key player within the sector. The company's strength lies in its long-standing experience in the renewable energy industry, a solid customer base, and robust financial backing that enables it to invest in large-scale projects. Additionally, Iberdrola has made significant strides in energy distribution and management, further bolstering its position in the market by leveraging smart grid technology and energy storage solutions to enhance efficiency and reliability.

Enphase Energy operates within the US Renewable Energy Transition Market with a focus on clean energy generation and storage. Known for its advanced microinverter technology, Enphase Energy has transformed the way solar energy systems are deployed and managed. Its key products include energy management systems that allow homeowners and businesses to maximize solar output and integrate energy storage solutions seamlessly.

Enphase Energy's strengths lie in its innovation and commitment to providing high-quality, reliable products that enhance the efficiency of solar energy systems. The company has also pursued strategic mergers and acquisitions to consolidate its position in the market, enabling it to expand its product offerings and enhance its technological capabilities. With a strong emphasis on customer service and education and a growing network of partnerships within the solar industry, Enphase Energy has solidified its role as a leader in advancing the transition toward renewable energy in the US.

Key Companies in the US Renewable Energy Transition Market Include:

• Iberdrola


• Enphase Energy


• Duke Energy


• Vestas Wind Systems


• First Solar


• Orsted


• Nextera Energy Resources


• Southern Company


• NextEra Energy


• SunPower


• Exelon


• Brookfield Renewable Partners


• Pacific Gas and Electric

US Renewable Energy Transition Market Industry Developments

The US Renewable Energy Transition Market is witnessing significant developments, particularly with companies like First Solar reporting major expansion initiatives in August 2023 aimed at doubling manufacturing capacity to meet rising solar demand. Enphase Energy has also announced in September 2023 a partnership with residential energy companies, further promoting its renewable solutions. In terms of market valuation, NextEra Energy reveals a robust growth trajectory attributed to substantial investments in solar and wind projects, reflecting a positive shift in the industry's financial landscape.

On the mergers and acquisitions front, Iberdrola completed the acquisition of a significant wind asset in September 2023, enhancing its renewable portfolio in the US. Additionally, Duke Energy revealed plans to invest heavily in battery storage and solar PV projects across multiple states. Over the past few years, policies promoting clean energy and investments have accelerated transitions, with the Biden administration’s initiatives in 2021 and the subsequent Infrastructure Investment and Jobs Act in November 2021 significantly shaping the sector. Various states are adopting ambitious renewable targets, driving competition and innovation within the sector. The increasing push for sustainability continues to evolve the market dynamics, compelling companies to adapt to changing consumer demands and regulatory frameworks.

US Renewable Energy Transition Market Segmentation Insights

• Renewable Energy Transition Market Energy Source Outlook
  
  
  
  • Solar Energy
  
  
  • Wind Energy
  
  
  • Hydropower
  
  
  • Biomass
  
  
  • Geothermal Energy
  
  
  
  


• Renewable Energy Transition Market Technology Outlook
  
  
  
  • Photovoltaic Technology
  
  
  • Concentrated Solar Power
  
  
  • Onshore Wind Turbines
  
  
  • Offshore Wind Turbines
  
  
  • Hydrokinetic Technology
  
  
  
  


• Renewable Energy Transition Market Application Outlook
  
  
  
  • Power Generation
  
  
  • Heating
  
  
  • Transportation
  
  
  • Industrial Processes
  
  
  
  


• Renewable Energy Transition Market End Use Outlook
  
  
  
  • Residential
  
  
  • Commercial
  
  
  • Industrial
  
  
  
  

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	42.3(USD Billion)
MARKET SIZE 2024	46.32(USD Billion)
MARKET SIZE 2035	151.8(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	11.395% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Iberdrola, Enphase Energy, Duke Energy, Vestas Wind Systems, First Solar, Orsted, Nextera Energy Resources, Southern Company, NextEra Energy, SunPower, Exelon, Brookfield Renewable Partners, Pacific Gas and Electric
SEGMENTS COVERED	Energy Source, Technology, Application, End Use
KEY MARKET OPPORTUNITIES	Grid modernization initiatives, Energy storage solutions, Renewable energy consulting services, Electric vehicle infrastructure expansion, Carbon credit trading platforms
KEY MARKET DYNAMICS	government policies and incentives, technological advancements in renewables, increasing consumer demand for sustainability, energy storage innovation, declining costs of renewable technologies
COUNTRIES COVERED	US