Clean Energy 2H 2025: Buy Signals & Catalysts
Iryna Trygub-Kainz, MBA, FRM®
Investment Management, Investment Blogging & Coaching
The U.S. clean energy sector faces headwinds in 2025, primarily due to the lack of supportive federal policies following the change in administration. Despite this challenging policy landscape, fundamental growth drivers persist. This article analyzes the current state of the clean energy industry and the impact of the Trump administration’s policies on renewable energy. It will also examine the key factors expected to fuel growth in the latter half 2025. Finally, the article identifies high-conviction buy signals and highlights promising investment opportunities within the clean energy sector for the remainder of the year.
To read the complete research, follow the link below:
www.ki-wealth.com/clean-energy-2h-2025-buy-signals-catalysts/
Key Points
Navigating the Crossroads: The U.S. Clean Energy Stance in 2025
Clean Energy Investments Stalled Amidst Trump Administration Policies
Navigating the Crossroads: The U.S. Clean Energy Stance in 2025
Clean energy isn’t just a buzzword in the U.S. anymore; it’s a core element of industrial policy, driving economic development for the long haul. Right now, the U.S. boasts a renewable energy market with an installed capacity of 412 GW (gigawatts). Projections from Mordor Intelligence suggest this figure will jump to 480.08 GW by the end of 2025. That’s a significant leap, reflecting the sustained growth in the sector.
Renewable sources already account for over 20% of all electricity generated in the U.S., and that percentage is steadily climbing. Solar, wind, and hydro are the big players here, making up 91% of the U.S. clean energy mix in 2025. These aren’t just niche energy sources; they’re becoming the backbone of the nation’s power supply.
While pinning down exact revenue figures for the U.S. in 2025 is tricky, current installed capacity and investment trends point to the U.S. holding 11% of the global clean energy market by value. This puts the U.S. in the top tier of global players, with China and the EU. The competition is fierce, but the U.S. is holding its own.
In 2025, solar, wind, and hydro power sources maintain their dominance in the clean energy sector, collectively representing 83% of global clean energy production.
According to data from the International Renewable Energy Agency (IRENA) and other sources, China will lead global renewable energy capacity in 2025, with the largest market share of 32%. The United States, Brazil, India, and Germany will follow.
Clean Energy Investments Stalled Amidst Trump Administration Policies
Since President Trump took office in January 2025, the clean energy sector in the U.S. has faced significant headwinds. While companies still see potential in the American market, policy shifts have created uncertainty. A report by E2, a nonpartisan environmental group, indicates that a staggering $7.9 billion in clean energy projects were cancelled, closed, or scaled down in the first quarter of 2025 alone. These projects spanned a range of technologies and locations, including a $200 million hydrogen fuel cell factory in South Carolina (Bosch) and a $2.5 billion battery plant in Georgia (Freyr). Despite these setbacks, roughly $1.6 billion was still invested in new solar, EV, and grid infrastructure projects during the same period, showing that the industry isn’t dead yet.
The Trump administration has clearly signaled a shift away from clean energy, prioritizing fossil fuel expansion and dismantling existing clean energy incentives. Moves to eliminate federal subsidies and tax credits for renewable energy, previously established under the Inflation Reduction Act and other Biden-era policies, have further dampened investor enthusiasm. The E2 report estimates that approximately 7,800 clean energy jobs have been lost so far this year due to these policy changes and project cancellations.
In the first half of April 2025, total U.S. wind power production was down by around 7% from the same period in 2024. This dip highlights the variability of renewable energy sources and the need for robust grid infrastructure and energy storage solutions to ensure a reliable power supply.
The U.S. wind and solar energy sectors have hit a rough patch at the beginning of the year. Production is down, and projects are getting bogged down in red tape. Connecting new renewable energy sources to the grid is a significant headache. The backlog is long, and outdated infrastructure isn’t helping. Plus, there’s a shortage of skilled workers to build and maintain these projects. Federal support for renewables has been scaled back, especially on public lands. Higher interest rates are also making financing big renewable energy projects more expensive, which slows everything down. Residential solar installations took a big hit in 2024, dropping 32% to their lowest level since 2021. Blame it on high financing costs, policy shifts like California’s net billing changes, and even major installer bankruptcies. In Addition, in April 2025, Donald Trump formally withdrew the U.S. from the Paris Climate Accord again and revoked financial commitments under the UNFCCC.
Trump’s Stance on Clean Energy as of May 2025
Donald Trump’s resistance to clean energy in 2025 stems from a mix of economic beliefs, ideological convictions, and political calculations. He has consistently criticized wind and solar energy, labeling them as expensive and reliant on “massive government subsidies.” He views them as an “economic and environmental disaster,” with particular disdain for wind turbines. Trump contends that renewables are not financially viable without taxpayer assistance and strain the federal budget.
Trump has also made controversial and scientifically dubious claims, such as alleging that wind turbines kill whales and damage marine ecosystems. Marine scientists and environmental agencies have refuted these claims. While not completely against renewable energy, Trump supports a “balanced” approach, advocating limited federal funding for renewables, primarily in areas with existing infrastructure. He emphasizes carbon capture and nuclear energy as cleaner alternatives to fossil fuels and expresses skepticism toward net-zero emissions goals, deeming them “unrealistic.”
The clean energy sector in the U.S. faces a complex situation as of May 2025. Regulatory shifts and fluctuating federal support have contributed to underperformance in some clean energy ETFs compared to the broader market. Policy adjustments and investor hesitancy are creating headwinds for clean energy stocks. In contrast, the S&P 500 and Nasdaq 100 indices are experiencing gains, fueled by a thriving tech sector and optimism surrounding artificial intelligence. Despite current challenges, the long-term potential for clean energy stocks remains promising. The key question is whether current conditions present a buying opportunity to increase investment in this sector. A detailed analysis is required to determine the optimal strategy.
U.S. Clean Energy Sector Primed for Growth in Late 2025
The U.S. clean energy sector may be gearing up for a strong second half in 2025, fueled by advances in cleantech manufacturing, artificial intelligence, and the carbon industry. Renewables deployment, in particular, stands to benefit from these converging trends.
Historically, the third quarter sees a surge in construction and installation activity due to better weather conditions. This seasonal boost could translate to increased revenues for solar and wind companies. But it’s not just the weather that’s driving change.
The rise of AI comes with a hefty energy footprint. As artificial intelligence becomes more pervasive, the demand for sustainable energy sources will only intensify. This creates a compelling need for cleaner alternatives to power these energy-hungry technologies.
Ongoing tech improvements are also making clean energy more efficient and affordable. A particularly significant area is the surging clean energy demand from U.S. data centers, which is rapidly reshaping utility planning, grid infrastructure, and renewable energy procurement strategies. Between 2024 and 2025, U.S. tech and data center companies have already contracted nearly 48 GW of clean energy, marking a substantial 66.4% year-over-year increase.
Siemens Energy (E.ON), a major player in the renewable energy space with operations in the U.S., recently revised its financial outlook for 2025 upward. In a report released on May 8, 2025, the company’s management projected revenue growth of 13-15% year-over-year (up from the previous 8-10% estimate). Profit margin guidance was also increased to 4-6%, with net income projections revised to €1 billion.
These positive results align with a broader trend of robust demand for grid modernization, energy storage, and clean power infrastructure, not just in the U.S., but also across the EU.
Buy Signals for the Second Half of 2025
Despite headwinds from current U.S. policies, the clean energy sector presents compelling buy signals for the latter half of 2025. This positive outlook is fueled by technological advancements and escalating demand, particularly from the tech and fintech sectors. Let’s dive into the details.
To read the complete research, follow the link below:
www.ki-wealth.com/clean-energy-2h-2025-buy-signals-catalysts/