TODAY'S LEAD: The U.S. clean energy sector enters March 2026 riding a record-breaking wave, setting new benchmarks for energy storage deployment and greenlighting the largest solar and storage project in U.S. history, even as evolving state policies and the insatiable demand from AI data centers reshape investment strategies.

KEY DEVELOPMENTS

US Storage Shatters 2025 Records: The nation installed a staggering 57.6 GWh of battery capacity last year, up 30%. PV Magazine
Largest US Solar Project Clears Hurdle: California's Valley Clean Infrastructure Plan (VCIP), targeting 20 GW solar and 20 GW storage, secured environmental approval. Solar Builder
AI Demand Spurs M&A Boom: Soaring data center energy needs drive M&A in solar-plus-storage, favoring de-risked projects with sure financing. PV Magazine
Massachusetts Cuts Efficiency Programs: House Bill 5151 advances, boosting solar but slashing $1 billion from energy efficiency. PV Magazine USA
Sabanci Taps Empact for IRA Compliance: Sabanci Renewables partners to de-risk 286 MW Texas solar portfolio, ensuring full IRA tax credits. PV Magazine USA

Solar & Storage

The U.S. solar and storage landscape continues its aggressive expansion, spearheaded by the monumental Valley Clean Infrastructure Plan (VCIP) in California. This project, poised to become the nation's largest, just cleared its critical environmental review, aiming for an astounding 20 GW of solar and 20 GW of energy storage by 2029. This approval signals California's unwavering commitment to massive-scale renewable integration, setting an ambitious bar for other states to follow. Solar Builder

This news arrives as the broader energy storage sector celebrates a landmark year. The U.S. installed a record 57.6 GWh of new battery capacity in 2025, a robust 30% increase year-over-year. Utility-scale projects accounted for the majority of this growth, while residential storage also saw a significant surge, fueled by crucial tax credits. This unprecedented deployment of energy storage is directly addressing grid stability concerns and enabling deeper penetration of intermittent renewables. PV Magazine

Driving much of this development and investor interest is the voracious energy appetite of AI data centers. This burgeoning demand is reshaping M&A activity in the solar-plus-storage sectors, with investors now heavily favoring de-risked, late-stage projects that can deliver firm power. Tech giants, in turn, are providing crucial offtake agreements, offering developers the financing certainty needed to scale these capital-intensive ventures. It's a clear signal that the clean energy transition is now inextricably linked to the digital economy. PV Magazine

Project-level activity remains brisk across the nation. Sabanci Renewables, for instance, has secured a partnership with Empact Technologies to ensure its 286 MW solar portfolio in Texas, encompassing the Pepper Solar and Lucky 7 projects, fully complies with the Inflation Reduction Act's labor and apprenticeship requirements. This move underscores the industry's increasing focus on professionalized compliance management to maximize federal incentives. PV Magazine USA

Community solar continues its steady buildout, with New Energy Equity, an ALLETE subsidiary, activating a 7-MW array in Moriah, New York. This project, situated in the Adirondack region, leverages a lease agreement with a local landowner, providing long-term income and demonstrating the economic benefits of distributed generation. Solar Power World

Further west, Colorado-based SOLON and Onyx Renewables completed a 3.7 MW solar installation in Mesa, Arizona, adding more distributed generation to the Western grid. Recurrent Energy also sold a 200 MWh battery energy storage system (BESS) project in Texas, contributing to the state's rapidly expanding energy storage capacity. These are critical, incremental steps that collectively build the foundation of a resilient, decarbonized grid. Solar Builder

Beyond solar and storage, "superhot" geothermal is gaining traction. Quaise Energy plans to construct its debut 50-megawatt plant in central Oregon this year, using advanced drilling techniques to tap deeper, higher-temperature geothermal resources. This demonstrates a diversification in renewable energy technologies beyond solar and wind, vital for firm, dispatchable clean power. Canary Media

Policy & Markets

State energy policies continue to present a mixed bag for the clean energy transition. In Massachusetts, House Bill 5151 advanced, aiming to simplify solar and storage permitting and broaden municipal net metering. However, this progress comes at a steep cost: the bill slashes $1 billion from crucial energy efficiency programs like Mass Save and defers the deadline for offshore wind development. This represents a significant pivot, prioritizing direct renewable deployment over demand reduction and potentially jeopardizing the state's broader climate goals. PV Magazine USA

Meanwhile, Indiana Governor Mike Braun has touted recent legislative successes that include a shift towards performance-based rates for utility companies and a reduction in environmental regulations. While the specifics of these changes are still being assessed, movements toward performance-based rates often create opportunities for grid modernization and expanded renewable energy integration, but also carry risks if not structured carefully to incentivize clean energy. Indiana Capital Chronicle

In Ohio, a proposed legislative carveout aims to allow electric distribution utilities to own and operate nuclear power plants, directly challenging a law designed to separate utilities from power generation. This move, currently under consideration by Ohio lawmakers, seeks to ensure that any costs associated with such ownership are not passed directly to ratepayers. It reflects a growing regional debate about the role of nuclear in a carbon-constrained future and who bears the financial risk. Ohio Capital Journal

Regulatory scrutiny is also intensifying, particularly in Maryland, where lawmakers are drafting legislation to subject underground power lines to increased state oversight by the Maryland Public Service Commission. This initiative stems from strong public and local official concerns over Baltimore Gas & Electric's proposed underground transmission line through historic neighborhoods, signaling broader public demand for rigorous review of infrastructure projects. Maryland Matters

California continues to lead on climate disclosure, with the California Air Resources Board (CARB) approving new regulations. These mandates will require companies operating in the state to begin reporting Scope 1 and Scope 2 emissions starting in August, setting a new standard for corporate transparency and potentially influencing federal disclosure requirements down the line. This is a critical step towards holding corporations accountable for their carbon footprints. Utility Dive

LOOKING AHEAD

NABCEP CE Conference: Solar and energy storage professionals will convene in Milwaukee from March 16-19 for critical training and code compliance updates.
Purdue Agrivoltaics Program: Purdue University launches the Midwest Agrivoltaics for Resilient Communities (MARC) program in 2025, studying agrivoltaics on Doral Renewables' Mammoth Solar project.
California Emissions Reporting: Companies must begin reporting Scope 1 and Scope 2 emissions in August under new CARB regulations.

Today's Quick Answers

Q: What does the record-breaking 2025 energy storage deployment mean for future clean energy project development and financing?

A: The 57.6 GWh of new battery capacity installed in 2025 significantly de-risks future intermittent renewable projects, providing developers and investors greater confidence in grid stability and revenue streams. This will accelerate the integration of large-scale solar and wind, making projects with co-located storage more attractive to financers and offtakers, especially those catering to high-demand sectors like AI data centers seeking firm power.

Q: How will the Massachusetts bill's cut to energy efficiency programs impact the state's clean energy goals, despite gains in solar and storage?

A: While Massachusetts aims to boost solar and storage, the $1 billion cut to energy efficiency programs like Mass Save represents a significant setback for demand-side management. This could lead to higher peak demand, necessitating more costly generation or storage buildout, and potentially undermining the state's holistic approach to decarbonization. Policymakers will likely face increased pressure to justify how this trade-off supports overall climate targets.

THE BOTTOM LINE: Strong storage growth and mega-project approvals underscore U.S. clean energy momentum, but developers must navigate complex, shifting state policies and leverage AI-driven demand to secure long-term project viability.