Renewables Claim 92% of New U.S. Power Plant Builds in 2025, Yet Supply Only a Tenth of Electricity

TL;DR: In 2025, 92% of new U.S. power plant capacity added was renewable, yet renewables supplied only ~10% of total electricity, while investor‑owned utilities enjoy a guaranteed 9.6% profit margin.

Context The U.S. power mix is shifting as older fossil‑fuel plants retire and developers favor wind, solar, and storage for new projects. Despite this construction trend, the existing fleet of coal and natural gas units still produces most of the electricity consumed each year.

Key Facts The U.S. Energy Information Administration’s Electric Power Monthly for 2025 shows that 92% of all new utility‑scale capacity reported that year came from renewable sources. This figure is based on monthly filings from utilities and independent power producers that list planned and completed additions.

Renewables accounted for roughly 10% of total U.S. electricity generation in 2025, according to the same EIA dataset, which aggregates actual net generation across all fuel types.

Investor‑owned utilities operate under a regulated return on equity that averages 9.6% nationwide, a figure derived from state public utility commission rate cases and compiled by the Federal Energy Regulatory Commission’s Form 1 database.

What It Means The gap between new build share and actual generation highlights the inertia of the current grid: even with almost all new capacity renewable, the legacy fossil fleet continues to dominate output. The guaranteed profit margin for utilities suggests that financial incentives remain tied to existing assets, potentially slowing the pace at which new renewable capacity translates into higher generation shares.

What to watch next Watch for upcoming state utility commission decisions on rate cases and federal infrastructure spending that could accelerate the retirement of older plants and boost the utilization of newly built renewable facilities.