Solar power plants generated more electricity than coal-fired plants in the United States over the past year, the first sustained nationwide crossover, even as President Donald Trump intervened to keep aging coal facilities operating.
The J.H. Campbell power plant in West Olive, Michigan, is a case in point. The plant's owner, CMS Energy, had planned to retire its remaining coal units by 2025. After Trump issued an emergency order in 2025 directing the plant to stay open to meet regional electricity demand, the utility delayed the closure.
The crossover is driven by economics, not policy. Utility-scale solar now costs roughly $35 to $50 per megawatt-hour to build and operate, according to Lazard's annual levelized cost of energy analysis, compared with $65 to $150 for coal. More than 100 gigawatts of solar capacity have been added to the U.S. grid since 2020, according to the Energy Information Administration, while coal capacity has fallen by more than 40 gigawatts over the same period.
Coal's decline predates the current administration. Coal provided about 50 percent of U.S. electricity in 2005, according to EIA data. By 2024, that share had fallen to roughly 15 percent, with solar and wind combined surpassing coal for the first time in 2023.
Federal subsidies have accelerated the shift. The Inflation Reduction Act's clean energy tax credits, passed in 2022, unlocked an estimated $270 billion in announced manufacturing and energy investments, according to the Department of Energy. Solar installations in 2024 alone added 50 gigawatts of capacity, a record, according to the Solar Energy Industries Association.
Trump has sought to slow the transition. In January 2025, he signed an executive order pausing disbursement of Inflation Reduction Act funds and directed agencies to prioritize "reliable, dispatchable" power sources, a category that includes coal and natural gas but not solar or wind. The order also established a national energy emergency, which the administration cited as legal authority for the Campbell plant directive.
Grid operators say the practical picture is more complicated. The Midcontinent Independent System Operator, which oversees the grid serving Michigan and 14 other states, has warned that retiring coal plants too quickly could strain reliability during peak winter demand. MISO's 2024 reliability report projected a capacity shortfall in the region by 2028 if retirements proceed on schedule without replacement generation.
Utility executives say they are building both. CMS Energy, Campbell's owner, has committed to net-zero emissions by 2040 and is adding 8 gigawatts of solar by 2030, according to its most recent integrated resource plan filed with Michigan regulators. The company has said it will comply with the federal directive while continuing its long-term transition.
Solar's cost advantage is now large enough that analysts expect the crossover to hold regardless of federal policy. The EIA projects solar will supply 20 percent of U.S. electricity by 2030, up from about 7 percent in 2024, and coal will fall below 10 percent.
