Connect with us

Published

on

Canadians gather! If you’re looking to go electric, there is an expansive program at your disposal offering varying levels of incentives for EV purchases and leases in Canada. We’ve compiled everything you need to know below, alongside an ever-growing list of vehicles that qualify.

Table of contents

EV incentives remain available in Canada

As a US-born citizen, much of my coverage of incentives in the past has pertained to my native country. However, a reader recently pointed out that a Canada-centric version of my long-running list of available US tax incentives would be welcomed by consumers up north as well.

My deepest apologies, Canada – I had no intention of leaving you in the dark for this long. As many of you are probably aware, there are purchase incentives for EVs available to consumers in Canada that are currently much more abundant (and easier to qualify for) than current US credits.

Good on you, Canada, and all the more reason to take advantage of the nation’s Incentives for Zero-Emission Vehicles (iZEV) Program. Below, you will find the details of the incentive program itself, how a given vehicle can or cannot qualify, and how you yourself can take advantage of the deals for going electric.

Lastly, we have compiled the current and up-to-date list of vehicles that qualify for purchase incentives per Transport Canada. Let’s begin with the program itself.

How the Incentives for Zero-Emission Vehicles (iZEV) Program works

Like all government-regulated programs, there is a lot of legal jargon and red tape to navigate through. Sometimes you just want to know what qualifies and what doesn’t.

Luckily for consumers up north, Canada’s iZEV program is relatively straightforward, and the government does a wonderful job of explaining it. Per Transport Canada:

The iZEV Program offers point-of-sale incentives for consumers (subject to funding availability) who buy or lease a ZEV vehicle. Only the vehicles listed on our website are eligible for an incentive when they’re purchased or leased for at least 12 months, on or after the eligibility date.

What types of EV incentives are available in Canada?

In total, there are three different types of electric vehicles that currently qualify for some level of incentives in Canada. From there, plug-in hybrids are divided one step further based on the all-electric range their batteries can deliver. Here’s how the incentive amounts currently breakdown:

  • Battery-electric (BEV), hydrogen fuel cell (FCEV), and longer-range plug-in hybrid vehicles (PHEV) are eligible for up to $5,000 CAD.
    • To qualify as “longer range plug-ins,” the vehicles must have an electric range equal to or greater than 50 km.
  • Shorter-range plug-in hybrid electric vehicles are eligible for up to $2,500 CAD.
    • Shorter-range plug-in vehicles have an electric range under 50 kilometers.
Ford-Europe-battery-plant-1
Ford Mustang Mach-E (Source: Ford)

What electric vehicles qualify for incentives in Canada?

In Canada, a slew of all-electric and plug-in hybrid electric vehicles qualify for at least some amount of incentives as long as they meet the qualifications laid out by Transport Canada. For example, each vehicle must meet all of the country’s Motor Vehicle Safety Standards.

Additionally, each qualifying vehicle must be built for driving on public streets, roads, and highways (no low-speed vehicles). The vehicle must also have at least four functioning wheels. Sorry, Aptera.

Qualifying vehicle types are split into two separate groups, which qualify for their own respective purchase incentives based on price:

  • A passenger car, where the base model manufacturer’s suggested retail price (MSRP) is less than $55,000 CAD.
    • Higher-priced trims of those EVs may also qualify for purchase incentives in Canada for a maximum MSRP of $65,000 CAD.
  • A station wagon, pickup truck (light truck), SUV, minivan, van, or special purpose vehicle, where the base model MSRP is less than $60,000 CAD.
    • Higher-priced trims of these vehicles are also eligible for purchase incentives for MSRPs up to $70,000 CAD maximum.

Per Transport Canada, here are other terms zero-emission vehicles must follow as part of the incentive program:

  • Only new vehicles are eligible for the federal incentive (EVs that haven’t been plated before).
  • Eligible ZEVs that were previously demo vehicles used for test drives are considered new vehicles and are eligible for the incentive as long as the odometer reads less than 10,000 kilometers.
  • Incentives can be applied to eligible ZEVs leased for at least 12 months but will be prorated based on any lease length of less than 48 months.
    • For example, a 48-month lease is eligible for the full incentive, while a vehicle with a 24-month lease will be eligible for half the incentive. (See table below.)
  • Vehicles are still eligible for the incentive even if delivery, freight, and other fees (like exterior color, add-ons, accessories, and packages) push the actual purchase price over these set limits.
  • As long as a given EV’s make, model, trim and year appears on Transport Canada’s list of eligible vehicles, an incentive can be awarded.

We have compiled those qualifying lists for you below.

Qualifying battery electric vehicles (BEVs)

As promised, here are the current battery electric vehicles (BEVs) that qualify for purchase incentives per Transport Canada. We will ensure this list is updated regularly so you’re getting the most up-to-date details.

Note: All incentive amounts are in Canadian dollars.

Make, Model, Year(s) Incentive for Full Purchase / 48Month Lease 36-Month Lease 24-Month Lease 12-Month Lease
AUDI
Q4 e-tron Quattro (2022) $5,000 $3,750 $2,500 $1,250
Q4 50 e-tron Quattro (2023) $5,000 $3,750 $2,500 $1,250
BMW
i3 s (2018-2021) $5,000 $3,750 $2,500 $1,250
i4 eDrive40
(2022-2023)
$5,000 $3,750 $2,500 $1,250
i4 eDrive34 (2023) $5,000 $3,750 $2,500 $1,250
CHEVROLET (GM)
Bolt LT/2LT/Premier/2LZ
(2018-2021)
$5,000 $3,750 $2,500 $1,250
Bolt LT (2022) $5,000 $3,750 $2,500 $1,250
Bolt EV LT (2023) $5,000 $3,750 $2,500 $1,250
Bolt EUV LT/Premier
(2022-2023)
$5,000 $3,750 $2,500 $1,250
FORD
Focus Electric (2018) $5,000 $3,750 $2,500 $1,250
Mustang Mach-E (all trims) (2022-2023) $5,000 $3,750 $2,500 $1,250
HYUNDAI
IONIQ 5 (2023)
Preferred/ Preferred Long Range/ Preferred AWD Long Range
$5,000 $3,750 $2,500 $1,250
IONIQ 5 (2022)
Essential/Preferred/Preferred Long Range/Preferred AWD Long Range
$5,000 $3,750 $2,500 $1,250
IONIQ 6 (2023)
Preferred RWD Long Range/ Preferred AWD Long Range
$5,000 $3,750 $2,500 $1,250
Kona Electric Preferred/Preferred
(2-tone)/ Ultimate (2022-2023)
$5,000 $3,750 $2,500 $1,250
Kona Electric Essential/Preferred/ Preferred (2-tone)/ Ultimate (2020-2021) $5,000 $3,750 $2,500 $1,250
Kona Electric Essential/Preferred/ Preferred (2-tone)/ Ultimate (2020-2021) $5,000 $3,750 $2,500 $1,250
Kona Electric Preferred/Ultimate (2019) $5,000 $3,750 $2,500 $1,250
Ioniq Electric Preferred/Ultimate
(2019-2021)
$5,000 $3,750 $2,500 $1,250
Ioniq Electric SE/SE CCP/Limited
(2017-2018)
$5,000 $3,750 $2,500 $1,250
KIA
EV6 RWD Standard Range/RWD Long Range/AWD Long Range (2022-2023) $5,000 $3,750 $2,500 $1,250
Niro EV Premium/Premium+/Limited (2023) $5,000 $3,750 $2,500 $1,250
Niro EV EX/EX+/SX Touring (2021-2022) $5,000 $3,750 $2,500 $1,250
Niro EV EX/SX Touring (2019-2020) $5,000 $3,750 $2,500 $1,250
Soul EV Premium/Limited (2021-2023) $5,000 $3,750 $2,500 $1,250
Soul EV Luxury/Luxury Sunroof/ Premium/Limited (2017-2020) $5,000 $3,750 $2,500 $1,250
MINI
Cooper SE Base/Premier Line 2.0/Premier+ Line 2.0 (2024) $5,000 $3,750 $2,500 $1,250
Cooper SE 3 Door/Hatch (2022-2023) $5,000 $3,750 $2,500 $1,250
Cooper SE 3 Door Classic/Premier/ Premier+ (2020-2021) $5,000 $3,750 $2,500 $1,250
MAZDA
MX-30 GS/GT (2022-2023) $5,000 $3,750 $2,500 $1,250
MITSUBISHI
i-MiEV (2017) $5,000 $3,750 $2,500 $1,250
NISSAN
Ariya (all trims) (2023) $5,000 $3,750 $2,500 $1,250
LEAF SV/SV Plus/SL Plus (2023) $5,000 $3,750 $2,500 $1,250
LEAF SV/S Plus/SV Plus/SL Plus (2021-2022) $5,000 $3,750 $2,500 $1,250
LEAF S/SV/S Plus/SV Plus/SL Plus (2020) $5,000 $3,750 $2,500 $1,250
LEAF S/SV/SL/S Plus/SV Plus/SL Plus (2018-2019) $5,000 $3,750 $2,500 $1,250
POLESTAR
2 Long Range Single Motor/Long Range Dual Motor (2023-2023) $5,000 $3,750 $2,500 $1,250
smart
EQ fortwo cabriolet (2018-2019) $5,000 $3,750 $2,500 $1,250
EQ fortwo coupe (2018-2019) $5,000 $3,750 $2,500 $1,250
fortwo electric drive coupe (2017-2018) $5,000 $3,750 $2,500 $1,250
fortwo electric drive coupe (2017-2018) $5,000 $3,750 $2,500 $1,250
SUBARU
Solterra AWD (2023) $5,000 $3,750 $2,500 $1,250
TESLA
Model 3 RWD (2023) $5,000 $3,750 $2,500 $1,250
Model Y RWD/Long Range AWD (2023) $5,000 $3,750 $2,500 $1,250
TOYOTA
bZ4X L FWD/LE FWD/XLE AWD (2023) $5,000 $3,750 $2,500 $1,250
VOLKSWAGEN
ID.4 RWD/Pro RWD/Pro AWD (2023) $5,000 $3,750 $2,500 $1,250
ID.4 Pro/Pro AWD (2021-2022) $5,000 $3,750 $2,500 $1,250
e-Golf Comfortline (2017-2020) $5,000 $3,750 $2,500 $1,250
VOLVO
C40 Recharge (2023) $5,000 $3,750 $2,500 $1,250
XC40 Recharge (2022-2023) $5,000 $3,750 $2,500 $1,250
Last updated May 11, 2023.
Canada EV incentives
The Hyundai IONIQ 6 / Credit: Hyundai North America

Plenty of plug-in hybrid electric vehicles (PHEVs) also qualify

Whereas battery EVs all qualify for up to $5,000 in incentives in Canada, PHEVs are a bit trickier and vary in eligible amounts based on a number of factors, including the make, model, and trim. Still, many models qualify for at least some level of purchase incentives and are worth checking.

Here are electrified models which currently qualify in Canada:

Make, Model, Year(s) Incentive for Full Purchase / 48Month Lease 36-Month Lease 24-Month Lease 12-Month Lease
AUDI
A3 Sportback e-tron (2017) $2,500 $1,875 $1,250 $625
BMW
330e RWD/xDrive (2021-2023) $2,500 $1,875 $1,250 $625
X3 xDrive30e (2021-2022) $2,500 $1,875 $1,250 $625
i3 w/Range Extender (2018-2021) $5,000 $3,750 $2,500 $1,250
i3 s w/Range Extender (2018-2021) $5,000 $3,750 $2,500 $1,250
CHEVROLET
Volt LT/2LT/Premier/2LZ (2018-2019) $5,000 $3,750 $2,500 $1,250
CHRYSLER
Pacifica Hybrid Touring L/Limited/ Pinnacle (2022-2023) $5,000 $3,750 $2,500 $1,250
Pacifica Hybrid Touring/Touring L-Plus/Limited/Pinnacle (2021) $5,000 $3,750 $2,500 $1,250
Pacifica Hybrid Touring/Touring L /Limited (2020) $5,000 $3,750 $2,500 $1,250
Pacifica Hybrid Touring/Touring L Touring Plus/Premium/Platinum Limited (2017-2019) $5,000 $3,750 $2,500 $1,250
FORD
Escape PHEV (2023) $5,000 $3,750 $2,500 $1,250
Escape PHEV SE/SEL/Titanium (2020-2022) $5,000 $3,750 $2,500 $1,250
Focus Electric (2018) $5,000 $3,750 $2,500 $1,250
Fusion Energi SEL/Titanium (2020) $2,500 $1,875 $1,250 $625
Fusion Energi SEL/Titanium/Platinum (2018-2019) $2,500 $1,875 $1,250 $625
HONDA
Clarity Plug-in Hybrid Base/Touring (2018-2021) $5,000 $3,750 $2,500 $1,250
HYUNDAI
Santa Fe PHEV Preferred/Luxury (2022-2023) $5,000 $3,750 $2,500 $1,250
Tucson PHEV Luxury/Ultimate
(2022-2023)
$5,000 $3,750 $2,500 $1,250
Ioniq Plug-In Hybrid Essential/ Preferred/Ultimate (2021-2022) $2,500 $1,875 $1,250 $625
Ioniq Plug-In Hybrid Preferred/Ultimate (2020) $2,500 $1,875 $1,250 $625
Ioniq Electric Plus Preferred/Ultimate (2019) $2,500 $1,875 $1,250 $625
Ioniq Electric Plus SE/Limited (2018) $2,500 $1,875 $1,250 $625
Sonata PHEV Ultimate (2017-2019) $2,500 $1,875 $1,250 $625
JEEP
Wrangler 4xe Unlimited Sahara/ Unlimited Rubicon/Willys (2022-2023) $2,500 $1,875 $1,250 $625
Wrangler 4xe Unlimited Sahara/ Unlimited Sahara High Altitude/ Unlimited Rubicon/ (2021) $2,500 $1,875 $1,250 $625
KIA
Niro PHEV EX (2023) $5,000 $3,750 $2,500 $1,250
Niro PHEV EX/EX Premium/SX Touring (2021-2022) $2,500 $1,875 $1,250 $625
Niro PHEV EX Premium/SX Touring (2019-2020) $2,500 $1,875 $1,250 $625
Optima PHEV EX/EX Premium
(2017-2020)
$2,500 $1,875 $1,250 $625
Sorento PHEV EX/EX+/SX
(2022-2023)
$5,000 $3,750 $2,500 $1,250
Sportage PHEV EX Premium/SX (2023) $5,000 $3,750 $2,500 $1,250
LEXUS
NX 450h+ (2022-2024) $5,000 $3,750 $2,500 $1,250
LINCOLN
Corsair Grand Touring (2021-2023) $2,500 $1,875 $1,250 $625
MINI
Countryman ALL4 (2018-2023) $2,500 $1,875 $1,250 $625
MAZDA
CX-90 GS/GS-L/GT (2024) $2,500 $1,875 $1,250 $625
MITSUBISHI
Outlander PHEV ES/LE/SEL/GT/
GT Premium (2023)
$5,000 $3,750 $2,500 $1,250
Outlander PHEV SE/LE/Black Edition/ GT (2022) $2,500 $1,875 $1,250 $625
Outlander PHEV SE/LE/SEL/GT (2020-2021) $2,500 $1,875 $1,250 $625
Outlander PHEV SE-Base/SE Limited Edition/SE Touring/GT (2018-2019) $2,500 $1,875 $1,250 $625
SUBARU
Crosstrek Plug-In Hybrid Limited (2020-2023) $2,500 $1,875 $1,250 $625
TOYOTA
Prius Prime SE/XSE/XSE Premium (2023) $5,000 $3,750 $2,500 $1,250
Prius Prime Base/Technology (2022) $2,500 $1,875 $1,250 $625
Prius Prime Base/Upgrade (2021) $2,500 $1,875 $1,250 $625
Prius Prime Base/Upgrade/
Technology (2018-2020)
$2,500 $1,875 $1,250 $625
RAV4 Prime SE/XSE/XSE Technology (2023) $5,000 $3,750 $2,500 $1,250
RAV4 Prime SE/XSE (2021-2022) $5,000 $3,750 $2,500 $1,250
VOLVO
V60 Recharge (2022-2023) $5,000 $3,750 $2,500 $1,250
Last updated May 11, 2023.

FAQ

How long will incentives from Canada’s iZEV Program be available?

The Incentives for Zero-Emission Vehicles (iZEV) Program is continuing until March 31, 2025 (or until available funding is exhausted).

How much money does the EV purchase incentive offer in Canada?

That number varies based on a number of factors. Simply put, any vehicle that meets Canada’s criteria outlined above can qualify for at least $625 and can go as high as $5,000.

How do I receive Canada’s ZEV incentive?

The incentive is applied at the point of sale by the dealership when you purchase your brand-new EV. It will appear directly on the bill of sale or lease agreement on eligible ZEVs on, or after, the eligibility date.

Note: The dealer must apply taxes and fees to the purchase or lease before applying the incentive and must submit the proper documentation to be reimbursed for the incentive provided to you, the consumer.

Can my vehicle purchase also qualify for provincial or territorial incentives?

Yes. In addition to the federal incentive program, your EV purchase may also qualify for any additional incentives offered in your given province or territory in Canada.

Can I use a tax write-off for my ZEV purchase if I receive a federal incentive?

No. It must be one or the other. Budget 2019 provided a separate tax write-off for zero-emission vehicles to support business adoption. For more information on tax write-offs for electric vehicles, contact the Canada Revenue Agency at 1-800-959-5525.

Can I qualify for federal incentives for more than one EV purchase?

Depends. Canadian individuals are eligible for one incentive under this program per calendar year. Businesses or provincial/territorial and municipal governments operating fleets are eligible for up to 10 incentives under the iZEV program per calendar year.

How do Canada’s federal EV incentives compare to the United States?

Great question. Currently, more electric vehicles in Canada qualify for incentives, but it’s a lot of the same vehicles. Qualifying terms also vary with neighbors to the south following the signing of the Inflation Reduction Act by President Biden in the summer of 2022. You can check out the US’ current federal tax credits for EVs here.

FTC: We use income earning auto affiliate links. More.

Continue Reading

Environment

E-quipment highlight: Kubota mini excavator goes from diesel to EV and back

Published

on

By

E-quipment highlight: Kubota mini excavator goes from diesel to EV and back

Japanese equipment giant Kubota brought 22 new or updated machines to the 2025 bauma expo earlier this year, but tucked away in the corners was a new retrofit kit that can help existing customers decarbonize more quickly, and more affordably.

No matter how badly a fleet may want to electrify, harsh economic realities and the greater up-front costs typically associated with battery electric remain high hurdles to overcome, but new retrofit options from major manufacturers are popping up to help lower those obstacles.

The latest equipment maker to put its name on the retrofit list is Kubota, who says its kit can be installed by a trained dealer in a single day.

That’s right! By this time tomorrow, your diesel-powered Kubota KX019 or U27-4 excavator (shown) could be fitted with an 18 or 20 kWh li-ion battery pack and electric drive motors and ready to get to work in a low-noise or low-vibration work environment where emissions are a strict no-no. Think indoor precision demolition or historic archeological excavation.

Advertisement – scroll for more content

Then, if necessary, it can go right back to diesel power.

From diesel to electric and back again


U27-4e electric retrofit; via Kubota.

If that sounds familiar, that’s because we’ve talked about a similarly flexible power solution from ZQUIP. The battery packs and diesel engines are much larger in that application, but the basic sales pitch remains the same: electric when it benefits your operation, diesel it doesn’t.

Kubota says its modular retrofit kits is a response to the increasing global demand for sustainable alternatives by focusing on making machinery that’s flexible and repairable enough to be “reusable,” and offer construction fleet managers a longer operational lifespan, superior ROI (return on investment), and lower TCO (total cost of ownership) than the competition.

Kubota’s solution also notably reduces maintenance costs and operational overheads. With no engine and associated components, servicing time and expenses are considerably reduced, saving customers both time and money. Additionally, with electricity costing far less than fossil fuels, it offers a highly economical advantage.

KUBOTA

International Rental News reports that other changes to the excavators include a more modern cab controls with a digital instrument cluster, a 60 mm wider undercarriage for more stability, and an independent travel circuit allows operators to use the boom, dipper, bucket, and auxiliary functions without an impact on tracking performance.

Kubota’s new kit, first shown at last year’s Hillhead exhibition in the UK, will officially be on sale this summer – any day now, in fact – though pricing has yet to be announced.

Electrek’s Take


If you’re wondering how it is that we’re still talking about bauma 2025 a full quarter after the show wrapped up, then I haven’t done a good enough job of explaining how positively massive the show was. Check out this Quick Charge episode (above) then let us know what you think of Kubota’s modular power kits in the comments.

SOURCE | IMAGES: Kubota, via International Rental News.


If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them. 

Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.

FTC: We use income earning auto affiliate links. More.

Continue Reading

Environment

America – it’s a party now! Plus: an electric Honda Ruckus and updated BMW

Published

on

By

America – it's a party now! Plus: an electric Honda Ruckus and updated BMW

Elon Musk isn’t happy about Trump passing the Big Beautiful Bill and killing off the $7,500 EV tax credit – but there’s a lot more bad news for Tesla baked into the BBB. We’ve got all that and more on today’s budget-busting episode of Quick Charge!

We also present ongoing coverage of the 2025 Electrek Formula Sun Grand Prix and dive into some two wheeled reports on the new electric Honda Ruckus e:Zoomer, the latest BMW electric two-wheeler, and more!

Prefer listening to your podcasts? Audio-only versions of Quick Charge are now available on Apple PodcastsSpotifyTuneIn, and our RSS feed for Overcast and other podcast players.

New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.

Advertisement – scroll for more content

Got news? Let us know!
Drop us a line at tips@electrek.co. You can also rate us on Apple Podcasts and Spotify, or recommend us in Overcast to help more people discover the show.


If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them. 

Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.

FTC: We use income earning auto affiliate links. More.

Continue Reading

Environment

FERC: Solar + wind made up 96% of new US power generating capacity in first third of 2025

Published

on

By

FERC: Solar + wind made up 96% of new US power generating capacity in first third of 2025

Solar and wind accounted for almost 96% of new US electrical generating capacity added in the first third of 2025. In April, solar provided 87% of new capacity, making it the 20th consecutive month solar has taken the lead, according to data belatedly posted on July 1 by the Federal Energy Regulatory Commission (FERC) and reviewed by the SUN DAY Campaign.

Solar’s new generating capacity in April 2025 and YTD

In its latest monthly “Energy Infrastructure Update” report (with data through April 30, 2025), FERC says 50 “units” of solar totaling 2,284 megawatts (MW) were placed into service in April, accounting for 86.7% of all new generating capacity added during the month.

In addition, the 9,451 MW of solar added during the first four months of 2025 was 77.7% of the new generation placed into service.

Solar has now been the largest source of new generating capacity added each month for 20 consecutive months, from September 2023 to April 2025.

Advertisement – scroll for more content

Solar + wind were >95% of new capacity in 1st third of 2025

Between January and April 2025, new wind provided 2,183 MW of capacity additions, accounting for 18.0% of new additions in the first third.

In the same period, the combination of solar and wind was 95.7% of new capacity while natural gas (511 MW) provided just 4.2%; the remaining 0.1% came from oil (11 MW).

Solar + wind are >22% of US utility-scale generating capacity

The installed capacities of solar (11.0%) and wind (11.8%) are now each more than a tenth of the US total. Together, they make up almost one-fourth (22.8%) of the US’s total available installed utility-scale generating capacity.

Moreover, at least 25-30% of US solar capacity is in small-scale (e.g., rooftop) systems that are not reflected in FERC’s data. Including that additional solar capacity would bring the share provided by solar + wind to more than a quarter of the US total.

With the inclusion of hydropower (7.7%), biomass (1.1%), and geothermal (0.3%), renewables currently claim a 31.8% share of total US utility-scale generating capacity. If small-scale solar capacity is included, renewables are now about one-third of total US generating capacity.

Solar is on track to become No. 2 source of US generating capacity

FERC reports that net “high probability” additions of solar between May 2025 and April 2028 total 90,158 MW – an amount almost four times the forecast net “high probability” additions for wind (22,793 MW), the second-fastest growing resource. Notably, both three-year projections are higher than those provided just a month earlier.

FERC also foresees net growth for hydropower (596 MW) and geothermal (92 MW) but a decrease of 123 MW in biomass capacity.

Taken together, the net new “high probability” capacity additions by all renewable energy sources over the next three years – i.e., the bulk of the Trump administration’s remaining time in office – would total 113,516 MW.  

FERC doesn’t include any nuclear capacity in its three-year forecast, while coal and oil are projected to contract by 24,373 MW and 1,915 MW, respectively. Natural gas capacity would expand by 5,730 MW.

Thus, adjusting for the different capacity factors of gas (59.7%), wind (34.3%), and utility-scale solar (23.4%), electricity generated by the projected new solar capacity to be added in the coming three years should be at least six times greater than that produced by the new natural gas capacity, while the electrical output by new wind capacity would be more than double that by gas.

If FERC’s current “high probability” additions materialize, by May 1, 2028, solar will account for one-sixth (16.6%) of US installed utility-scale generating capacity. Wind would provide an additional one-eighth (12.6%) of the total. That would make each greater than coal (12.2%) and substantially more than nuclear power or hydropower (7.3% and 7.2%, respectively).

In fact, assuming current growth rates continue, the installed capacity of utility-scale solar is likely to surpass that of either coal or wind within two years, placing solar in second place for installed generating capacity, behind only natural gas.

Renewables + small-scale solar may overtake natural gas within 3 years

The mix of all utility-scale (ie, >1 MW) renewables is now adding about two percentage points each year to its share of generating capacity. At that pace, by May 1, 2028, renewables would account for 37.7% of total available installed utility-scale generating capacity – rapidly approaching that of natural gas (40.1%). Solar and wind would constitute more than three-quarters of installed renewable energy capacity. If those trend lines continue, utility-scale renewable energy capacity should surpass that of natural gas in 2029 or sooner.

However, as noted, FERC’s data do not account for the capacity of small-scale solar systems. If that’s factored in, within three years, total US solar capacity could exceed 300 GW. In turn, the mix of all renewables would then be about 40% of total installed capacity while the share of natural gas would drop to about 38%.

Moreover, FERC reports that there may actually be as much as 224,426 MW of net new solar additions in the current three-year pipeline in addition to 69,530 MW of new wind, 9,072 MW of new hydropower, 202 MW of new geothermal, and 39 MW of new biomass. By contrast, net new natural gas capacity potentially in the three-year pipeline totals just 26,818 MW. Consequently, renewables’ share could be even greater by mid-spring 2028.

“The Trump Administration’s ‘Big, Beautiful Bill’ … poses a clear threat to solar and wind in the years to come,” noted the SUN DAY Campaign’s executive director, Ken Bossong. “Nonetheless, FERC’s latest data and forecasts suggest cleaner and lower-cost renewable energy sources may still dominate and surpass nuclear power, coal, and natural gas.” 


To limit power outages and make your home more resilient, consider going solar with a battery storage system. In order to find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and you share your phone number with them.

Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*

FTC: We use income earning auto affiliate links. More.

Continue Reading

Trending