The US investment in clean energy and transportation technologies surged to $75 billion in the third quarter of 2025, marking the highest quarterly investment on record. The momentum, a sharp reversal of prior trends, was largely fueled by soaring consumer purchases of electric vehicles (EVs) and residential clean technology, according to the latest data from the Clean Investment Monitor (CIM).
The $75 billion total represents an 8% increase compared to the same period in 2024. In Q2 2025, clean investment had totaled $68 billion, marking the third consecutive quarterly decline at the time, driven by a slowdown in manufacturing and a modest, yet still significant, $34 billion in retail investment. The Q3 figures show that consumer urgency, likely tied to expiring incentives, provided a powerful, immediate stimulus, dramatically turning the overall investment trajectory upward.
Consumer spending:
The retail segment—which includes zero-emission vehicles, rooftop solar, behind-the-meter batteries, and heat pumps—accounted for over half of the total, reaching a record $41 billion in Q3, a jump from the $34 billion retail figure in the preceding quarter.
The main powerhouse behind the retail boom was the electric vehicle market. Investments in ZEVs (zero-emission vehicles) alone hit $31 billion in the quarter. Analysts attribute this surge to a rush by buyers aiming to capture federal tax credits before an anticipated end date, illustrating the market’s immediate and potent response to policy signals. Alongside EVs, residential solar and storage installations continued their steady rise, supported by favorable state policies and falling costs for decentralized energy systems.
Uneven progress:
While the consumer market is flying high, the report signals uneven progress across other critical sectors of the clean energy transition.
The CIM data shows that manufacturing investment—the dollars spent on building new clean technology factories—declined for the fourth consecutive quarter, totaling $10 billion in Q3. This is a further slide from the already subdued $11 billion invested in manufacturing during Q2 2025. The slowdown raises concerns about the long-term domestic supply chain needed to sustain the current consumer demand. Though EV supply chain projects dominated the announced pipeline, the consistent decline in actual investment suggests that high costs, material shortages, and permitting delays are stalling the transition of factory promises into operational facilities.
Investment in the energy and industry segment, which covers utility-scale clean electricity deployment and industrial decarbonization, totaled $25 billion, a modest 3% increase from the $23 billion recorded in Q2. Within this, most funding went towards clean electricity ($24 billion), with utility-scale solar and battery storage projects continuing to lead the way. However, dedicated funding for industrial decarbonization—such as carbon capture, clean hydrogen, and green materials production—remained sluggish, securing only $1 billion of the total, underscoring a persistent challenge in transitioning hard-to-abate sectors.
Trends (Q3 2025):
• Record Total: U.S. clean investment reached an all-time high of $75 billion, reversing a two-quarter decline.
• Retail Dominance: Consumer purchases in the retail segment hit a record $41 billion, accounting for 54% of all clean investment.
• EV Catalyst: Electric vehicles were the largest single driver, attracting $31 billion in sales, likely boosted by a rush to secure federal tax credits.
• Manufacturing Slump: Investment in manufacturing facilities continued to decline for the fourth straight quarter, falling to $10 billion, signaling a bottleneck in the domestic supply chain.
• Industrial Lag: Decarbonization projects for heavy industry (e.g., carbon capture, hydrogen) secured only $1 billion, remaining a slow-moving segment.
