High energy expectations for renewables

The US renewable energy industry has the wind at its back

Significantly expanded climate and clean energy incentives within recently passed legislation have breathed tremendous life into green projects. Societal pressure on businesses to reduce emissions continues to accelerate every year, adding to the industry’s progress. And the rapid advancement of technologies to support better performance, lower costs, improved resiliency, and other benefits has made many renewable generation sources on par with and—in an increasing number of instances – a competitive alternative to conventional energy sources.

August 2024 will mark two years since the passage of the Inflation Reduction Act (IRA). Given the upcoming anniversary, we decided to check in with US renewable energy company executives about their companies’ plans and their views on sector growth, emerging technologies, financing tools, changing regulations, and other key issues.

What we found is that the expansion of renewables is a business opportunity and the result of customer demand as much as the outcome of pressure from government, investors, and society to reduce emissions as quickly as possible. However, incentives are critical to project planning and will be for the foreseeable future. Wind and solar continue to dominate, but the companies are exploring new technologies to build out their portfolios, another benefit of the legislation.

Despite progress, barriers still prevent a smoother supply chain and access to talent. Inflation and the higher cost of capital also continue to pose a threat to the industry. Our survey report showcases several bright points for the US renewable energy industry as well as ongoing efforts to prevail over its challenges.