Coal’s Decline Accelerates Amid Renewables and Storage Growth
Coal’s contribution to U.S. electricity generation has plummeted from over 50% to around 17% today, with projections suggesting it could drop to just 7% by 2035. This dramatic shift is primarily driven by aging coal plants, a surge in natural gas availability, and the increasing affordability of solar and wind energy combined with battery storage, according to recent forecasts.
Bloomberg New Energy Finance reports that the cost of a four-hour battery energy storage project has fallen 27% year-on-year to a record low of $78 per megawatt-hour in 2025. Utilities are increasingly finding that it is more cost-effective to replace outdated coal facilities with renewable alternatives, further diminishing coal’s role in the energy mix.
This transition signifies a structural change in the U.S. energy landscape rather than a temporary cycle. With the economic advantages of renewable energy and storage technologies accelerating, investment opportunities are shifting away from coal and toward modernization in energy systems.
