As we look ahead to 2025, the world is set to witness significant shifts in renewable energy. Driven by global initiatives to combat climate change and an increasing focus on sustainability, renewable energy trends in 2025 will continue to reshape the energy landscape. With advancements in technology, energy policy goals, and growing demand for cleaner energy sources, 2025 is positioned to be a pivotal year in the renewable energy sector. In this article, we’ll explore the current trends in renewable energy, challenges the industry may face, and opportunities for businesses and consumers alike.
Looking Back At 2024: Key Renewable Energy Trends
Before we dive into the renewable energy trends for 2025, it’s essential to look back at 2024 to understand how the renewable energy landscape has evolved. In our 2024 Renewable Energy Trends, we discussed the rapid growth of solar and wind power, the expansion of electric vehicle (EV) infrastructure, and the increasing role of energy storage systems. The renewable energy industry saw an unprecedented push toward decarbonization, with governments and businesses worldwide committing to net-zero carbon emissions targets.
In the U.S., legislation like the Inflation Reduction Act (IRA) fueled investments in clean energy technologies, helping drive the cost of renewables down and encouraging widespread adoption. Solar and wind energy both reached new milestones, becoming some of the cheapest energy sources available. Simultaneously, energy storage technologies matured, allowing for more efficient integration of intermittent renewable power.
The global renewable energy market experienced a surge in capacity additions, particularly in solar and wind. Countries in Europe, Asia, and North America ramped up efforts to transition away from fossil fuels, with ambitious goals to expand clean energy capacity into the future. This momentum from 2024 is set to carry into the renewable energy trends of 2025, with even more growth expected globally.
New Trends In Renewable Energy For 2025: A Global Perspective
As we move into 2025, several new trends in renewable energy will shape the future of power generation and business energy consumption. These trends are influenced by technological advancements, regulatory changes, and the increasing role of renewables in meeting rising global energy demand.
Solar Energy Continues To Lead The Way
Solar energy is set to dominate the renewable energy industry in 2025. According to the International Energy Agency (IEA), solar will meet nearly half of the global growth in electricity demand through 2025. Solar power will remain a key driver of global renewable energy capacity additions thanks to ongoing advancements in photovoltaic technology and decreasing costs. As solar becomes more accessible, both large-scale solar farms and solar rooftop installations are expected to grow, further boosting solar’s share in the energy mix.
In regions like the U.S., solar energy is expected to surpass coal as a major source of electricity generation. This shift will help the U.S. continue its trend toward decarbonization while providing opportunities for businesses to invest in commercial solar projects. Learn more about solar energy solutions and how they can benefit your business.
The Rise Of Offshore Wind
Offshore wind is another area poised for rapid expansion in 2025. As governments worldwide prioritize the development of offshore wind farms, advancements in turbine technology and increased investment are driving costs down. Offshore wind power offers higher energy yields due to stronger and more consistent winds at sea, making it an attractive option for countries with extensive coastlines.
In Europe, offshore wind capacity is set to double by 2025, with the U.K., Germany, and Denmark leading the charge. In the U.S., offshore wind projects in regions like the East Coast and the Gulf of Mexico are expected to progress significantly. The Biden administration’s goal of deploying 30 gigawatts (GW) of offshore wind by 2030 is a testament to the growing role of wind energy in the country’s renewable energy strategy.
Expansion Of Energy Storage Solutions
Energy storage technologies will play an increasingly important role in ensuring the reliability of renewable energy systems in 2025. As more renewable energy sources like solar and wind are integrated into the electric grid, energy storage will be essential for managing fluctuations in power generation.
Energy storage is also critical for decoupling electricity generation from consumption, allowing businesses and utilities to store excess energy during periods of low demand and release it when needed. This capability is especially crucial for balancing intermittent renewable sources and ensuring grid stability. Today, energy battery storage plays a critical role in the ancillary services markets of the electricity grid helping to balance supply and demand.
Electrification Of Transportation
The EV sector is set to accelerate in 2025, with electric vehicles becoming more mainstream. The deployment of EV infrastructure, such as charging stations, is a key part of this trend. Governments and businesses alike are investing in the expansion of fast-charging networks, which will support the growing number of EVs on the road.
This shift toward electric transportation will significantly increase electricity demand, pushing further reliance on renewable energy sources to meet the growing need for clean power. Moreover, EVs are becoming an integral part of smart grid technologies, where vehicle-to-grid (V2G) systems enable EVs to store and supply energy back to the grid or homes when needed.
Challenges Facing Renewable Energy In 2025
Despite the optimistic outlook, the renewable energy sector will face several challenges in 2025. These include:
Grid Infrastructure Limitations
As renewable energy capacity continues to grow, aging grid infrastructure may struggle to accommodate the increased load. Significant investment will be needed to modernize grids and integrate renewable energy sources effectively.
Supply Chain Disruptions
Global supply chain issues, such as shortages of key materials for solar panels, batteries, and wind turbines, may delay renewable energy projects. Governments and companies will need to work together to ensure a steady supply of materials to meet growing demand.
Permitting and Regulatory Hurdles
In many regions, slow permitting processes and regulatory constraints hinder the deployment of renewable energy projects. Streamlining these processes will be essential for achieving renewable energy goals. For example, PJM, the largest electric grid operator in the U.S., has the world’s largest backlog for renewable energy projects.
Opportunities For Energy Customers In 2025
With the continued growth of renewable energy, 2025 presents numerous opportunities for businesses and consumers to benefit from the latest green energy trends. Here are some ways energy customers can take advantage of the renewable energy market in 2025:
Invest in On-Site Renewable Energy
Installing solar panels, wind turbines, or energy storage systems can help businesses reduce their reliance on the grid and lower energy costs. Investing in renewable energy technology is also a way to future-proof your business against rising electricity prices. To learn more, visit our guide on how to reduce energy costs at your business.
Participate in Demand Response Programs
Businesses can optimize their energy use by participating in demand response programs, where they are compensated for reducing energy consumption during peak periods. This can help reduce energy costs and improve grid stability.
Explore Green Energy Contracts
In deregulated energy markets, businesses and consumers have the option to purchase energy from renewable sources. By working with an energy broker, companies can secure green energy contracts that align with their sustainability goals. Find out more about deregulated energy markets and how to navigate them by contacting our team of market experts.
Need Guidance Embracing Renewable Energy In 2025?
The renewable energy trends in 2025 reflect a dynamic and rapidly evolving industry that is transforming the global energy landscape. With continued advancements in technology and growing demand for clean power, the future of renewable energy is brighter than ever. However, challenges such as grid infrastructure and supply chain disruptions will need to be addressed to fully realize the potential of green energy.
At Diversegy, we are committed to helping businesses navigate the complexities of the renewable energy market. Whether you’re looking to invest in solar energy, explore energy storage options, or reduce your energy costs, our team of experts can provide tailored solutions to meet your needs. Contact us today to learn how we can help your business thrive in the renewable energy future of 2025 and beyond.
