New Survey: 100% of Renewable Investors Perceive U.S. Market Increasing in Attractiveness Compared to Other Leading Countries Post-IRA

ACORE Releases Evaluation Monitoring Firm Expectations for Renewable Finance Via 2026

A brand new evaluation launched at this time by the American Council on Renewable Power (ACORE) assesses how the Inflation Discount Act (IRA) will impression the near- and mid-term views of a number of the most distinguished that are traders and builders within the renewable vitality sector. The report, Expectations for Renewable Power Finance in 2023-2026, additionally presents survey outcomes that handle the headwinds at present limiting the speed of unpolluted vitality development and the potential impacts of latest and different -various financing constructions, similar to transferable tax credit, available on the market over the following three years.

“America has by no means been a extra enticing place for investing in renewable vitality than it’s at this time, because of the coverage certainty offered by the IRA,” stated ACORE President and CEO Gregory Wetstone. “Though many alternatives await, there are severe market challenges that should be addressed to comprehend the potential of the IRA and obtain the Biden administration’s objective of decarbonization of the electrical energy sector by 2035.”

Whereas most of the similar headwinds that existed earlier than the IRA’s enactment (grid-related points, provide chain challenges, commerce restrictions, tax fairness constraints) proceed to impression renewable traders and builders, the bag evaluation discovered that the IRA elevated the participation of corporations within the renewable vitality market by 2023. All surveyed builders and most traders stated they plan to extend their exercise in US renewable vitality sector in comparison with final 12 months, with 84% of traders planning to extend their US renewable vitality funding by 5% or extra.

Extra survey outcomes:

For the primary time in six years ACORE has performed investor surveys, traders unanimously count on the US to extend in attractiveness for renewable vitality funding in 2023-2026 in comparison with different international locations.
Most traders (83%) count on the attractiveness of renewable vitality to reasonably or considerably improve in comparison with different asset lessons of their portfolios in 2023-2026. Not one of the traders surveyed anticipated the attractiveness of renewable vitality to lower.
Survey respondents commented that headwinds similar to provide chain constraints, commerce restrictions, interconnection queue delays, and inadequate transmission capability create vital danger challenges that might result in delays in deal circulation, longer lead instances, and elevated challenge prices.
One third of builders have decreased their danger profiles by 2023. Nevertheless, most main builders and lots of traders are prepared to take extra dangers.
Multiple-third of traders and builders count on tax fairness accessibility to lower this 12 months, however of the surveyed traders who particularly put money into tax fairness, 45% count on it to extend this 12 months in comparison with 2022.
Over 80% of surveyed traders plan to make use of tax credit score transferability or direct funds.
Survey contributors agreed that the tax fairness market would wish to almost triple in measurement (from $18-20 billion yearly to greater than $50 billion) to satisfy elevated post-IRA demand.
Latest makes an attempt to restrict ESG investing have affected a 3rd of traders and builders.
Over 90% of surveyed traders and builders prioritize low to average revenue or vitality communities (as outlined by the IRA) to some extent of their renewable funding or improvement choices. .
For the second 12 months in a row, traders ranked utility-scale photo voltaic, vitality storage, and industrial photo voltaic as the highest three most engaging clear vitality sectors for funding in 2023-2026.
PJM, MISO, ERCOT, and CAISO have been chosen as the highest electrical energy markets for renewable vitality funding and improvement in 2023-2026.
Many survey respondents reported plans to take part in native efforts to increase clear vitality manufacturing. Multiple-third of traders (38%) plan to put money into clear vitality manufacturing services at house within the U.S. Twenty-eight % of builders report plans to open a brand new plant in manufacturing, and 33% plan to encourage their suppliers to open services at house. .
The report summarizes the coverage reforms and market drivers that ACORE is pursuing this 12 months to speed up the expansion of renewable vitality, maximize the impression of IRA, and cut back the impression of headwinds within the sector.

To obtain Expectations for Renewable Power Finance in 2023-2026, https://acore.org/expectations-for-renewable-energy-finance-in-2023-2026/