Driving the Clean Energy Revolution

The Crucial Role of Finance in US Renewable Energy Industry

In recent years, the US has witnessed a surge in renewable energy investments, reaching a record high of USD 1.3 trillion in 2022 (IRENA, 2023). This growth is fueled by a combination of factors, including favorable government policies, increased awareness of the environmental benefits of clean energy, and the growing interest in the energy transition. As a result, renewable energy has become an attractive investment opportunity for both public and private sector investors, who are increasingly recognizing the potential for long-term returns and positive environmental impact.

Executive summary

3 trillion in 2022 (IRENA, 2023). This growth is fueled by a combination of factors, including favorable government policies, increased awareness of the environmental benefits of clean energy, and the growing interest in the energy transition. As a result, renewable energy has become an attractive investment opportunity for both public and private sector investors, who are increasingly recognizing the potential for long-term returns and positive environmental impact.

I. Federal Incentives: A. Investment Tax Credit (ITC): - Businesses can deduct a percentage of their solar installation costs from federal taxes. - ITC offers a tax credit of up to 30% of the cost of a renewable energy system. B. Production Tax Credit (PTC): - Provides a per-kilowatthour credit for electricity generated by renewable energy systems. - PTC offers a corporate tax credit of up to 1.

Key findings

  • State-Level Policies: Renewable Portfolio Standards (RPS) require utilities to source a specific percentage of electricity from renewable sources
  • Projects above 1 MW: Construction can begin on or after January 30, 2023, according to the United States Environmental Protection Agency
  • Government Support and Policies The US government has implemented various financial incentives, tax credits, grants, and subsidies at federal, state, and local levels to promote renewable energy investment and reduce project costs
  • Deloitte forecasts that these investment levels will continue into 2023, as investors are attracted by transparent and predictable returns on mature technologies backed by the IRA's 10-year tax credits

Who this is for

This report is for energy and cleantech executives.

Download the full report: Driving the Clean Energy Revolution (PDF)

Published by ValueXPA — finance partner for $30–150M industrial manufacturers across the US, Australia, and India. Browse more research at valuexpa.com/insights.