EIA: Natural Gas In Power Generation Drops 3% As Solar Reshapes 2025 Energy Mix

The U.S. energy mix shifted noticeably in 2025, as solar power gained ground and natural gas lost its grip on electricity generation. The country generated 4.43 terawatt-hours of electricity in 2025, up 2.8% from the previous year’s record. Data centers were a big reason for that growth, pushing up demand across commercial, residential, and industrial sectors.

Natural gas still topped the charts as the leading source of electricity, supplying about 40% of generation. But its share in the electric power sector actually fell, with use dropping 3%. Solar and wind picked up the slack, taking some of natural gas’s market share.

Solar had a strong year. It rose to 17% of the total generation mix in 2025. That’s a big jump, and it’s not slowing down. In 2026, solar’s expected to climb to 18%, with most new grid-scale capacity coming from solar projects. Renewables like solar and wind are on track to make up 80% of new capacity additions through 2035.

Solar climbed to 17% of the grid in 2025 — and it’s only picking up speed from here.

Even though natural gas lost ground in the electric sector, its overall consumption actually rose. Total natural gas use hit a record 91.4 to 92 billion cubic feet per day. That’s because residential and commercial users burned more of it, especially during the cold winter months. In January 2025, monthly use hit a record 126.6 to 126.8 billion cubic feet per day, driven largely by a polar vortex. Residential sector demand reportedly surged roughly 11% in 2025, reflecting just how much colder conditions drove heating needs across the country.

Prices were also a factor. Henry Hub natural gas prices jumped 56%, averaging $3.52 per million British thermal units. Since natural gas sets the price for electricity during most hours, higher gas prices pushed up wholesale electricity costs too. ISO-NE saw the biggest increase, averaging $29 per megawatt-hour.

Looking ahead to 2026, coal’s expected to drop to 16% of the mix, while solar keeps rising. Meanwhile, coal combustion reportedly accounts for approximately 55% of CO2 emissions in the U.S. electricity sector, underscoring why its continued decline matters for climate goals. Natural gas consumption’s projected to dip slightly. Around 86 gigawatts of new capacity are set to come online, mostly solar. Data center demand in regions like ERCOT and PJM’s expected to keep driving electricity growth. This follows roughly two decades of flat generation between 2000 and the early 2020s, making the recent surge even more significant.

✅ Claims in this article were verified using AI-assisted fact-checking.