US electricity demand grew just 1.5% in Q1 2026, far less than feared earlier in the year. Renewables led by solar power expanded by 24%, offsetting 80% of rising demand. The growth in wind, solar, and hydro (up 11% combined) outpaced demand growth by nearly 2:1, continuing the trend of clean energy pushing fossil fuels off the grid.

Hydroelectric production surged unexpectedly without added capacity, likely due to early snowpack melting from unusual warm weather in the western US. This weather pattern—baking temperatures in the west while the east suffered a deep freeze—makes the first quarter data difficult to interpret. Coal generation dropped over 10%, with natural gas slightly increasing.

Overall fossil fuel use declined 3% year-over-year as renewables filled the gap. The 24% solar growth alone could handle most new demand. Early snowmelt may cause hydroelectric shortages later in the year, while global natural gas prices could rise due to Persian Gulf conflicts, potentially affecting the US energy mix.