That is enough capacity to power over 1.6 million homes – representing a 14% jump over the same period a year ago. Battery storage alone surpassed its previous Q3 record with 4.7 GW installed. This strong year was expected given the strong momentum and policy tailwinds supporting the industry over the last several years. Despite strong near-term numbers, the report highlights how lingering policy and regulatory uncertainty put the pace of future growth at risk.
“The third quarter’s record results mask an unstable policy environment that is threatening our ability to meet our future energy needs,” said ACP CEO Jason Grumet. “The policy chaos at the federal level has seeped into every part of project timelines, stalling growth precisely when we need to meet demand and keep energy prices affordable for American families and businesses.”
Decline in Power Purchase Agreements: Something to Watch
While Q3 posted record installations, the forward-looking indicators tell a more concerning story. Power purchase agreements (PPAs) fell 31% year-over-year, pushing the year-to-date total for all offtake types 38% below the same point last year.
Despite robust demand for power, buyers largely sat on the sidelines in the third quarter, waiting for a clearer policy environment to emerge and the rules around tax credit eligibility for developing future projects to be set. Treasury’s long-awaited guidance on transferable tax credits and foreign-entity-of-concern rules only landed halfway through Q3, this complicated financing conversations and resulted in virtually no net pipeline growth (
“Demand from AI, data centers, and onshoring manufacturing is set to push U.S. electricity needs to all-time highs next year,” added Grumet. “With swift policy action, this demand can be met with domestic clean energy, supporting U.S. competitiveness in the race for these new technologies.”
Q3 2025 Key Highlights:
