Renewable energy is on track to pass natural gas as the largest source of installed generating capacity in the U.S. as soon as next summer.

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According to the latest data from the U.S. Energy Information Administration (EIA), renewable energy represented 34.3% of U.S. utility-scale generating capacity at the end of June. By June 2027, that's expected to reach 37.1%.

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And most of that growth is coming from solar.

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The EIA expects another 43.6 gigawatts of utility-scale solar capacity to be added over the next 12 months, along with 10.2 gigawatts of wind. Throw in an estimated 6 gigawatts or more of new small-scale solar, and total renewable capacity could reach roughly 546 gigawatts by next summer.

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Natural gas, meanwhile, would be sitting at roughly 518 gigawatts.

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That's a pretty significant milestone.

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But for investors, the more interesting number is 82.9 gigawatts.

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This is where the money is going

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Renewables and battery storage could add nearly 83 gigawatts of generating and storage capacity over the next year when small-scale solar is included. Meanwhile, total fossil-fuel and nuclear capacity is projected to decline by roughly 3.1 gigawatts.

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Battery storage alone is expected to add another 22.8 gigawatts by next July, increasing installed battery capacity by more than 44%.

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This isn't some 2040 projection.

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This is infrastructure that's being built now.

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And that's where I think investors should focus.

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NextEra Energy (NYSE: NEE), for instance, remains one of the largest renewable-energy developers in the country. First Solar (NASDAQ: FSLR) gives investors more direct exposure to utility-scale solar manufacturing.

Then there's GE Vernova (NYSE: GEV), which gives investors exposure not only to wind but also to the grid equipment required to connect all this new generation.

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That's particularly important because adding another 80-plus gigawatts of renewable energy and storage doesn't mean much if the grid can't handle it.

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Don't write off natural gas

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None of this means natural gas is disappearing.

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In fact, EIA data show U.S. natural-gas generating capacity increased by roughly 7.5 gigawatts during the 12 months ended June 2026.

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And natural gas remains extremely important because installed capacity isn't the same thing as electricity generation. Solar and wind don't operate continuously, while natural-gas plants can ramp up when electricity demand rises, or renewable generation falls.

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That's why I wouldn't look at this as renewables replacing natural gas.

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I'd look at it as evidence of where the next massive wave of energy infrastructure spending is going.

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The EIA expects developers to add a record 86 gigawatts of utility-scale generating capacity in 2026 alone. Solar accounts for 51% of that total, battery storage another 28%, and wind 14%. Natural gas accounts for just 6.3 gigawatts.

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To be sure, renewable energy doesn't have to eliminate natural gas for investors to make money. It just has to keep taking a bigger piece of America's rapidly expanding electricity infrastructure. And right now, that's exactly what's happening.

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