Three Indicators for Continuing Clean Energy Transition’s Momentum!

We’re only halfway through 2023, and momentum around the clean energy transition continues! There are some major indicators showing that the industry is primed for continued growth. Just last month, CleanCapital announced that it secured another commitment from Manulife Investment Management of up to $500 million and has officially crossed the $1 billion mark in deployed capital. Despite market volatility, this raise demonstrates private investors’ commitment to the renewable energy space.??

Here are three indicators that show the clean energy transition is ready for more:

1 Death of the Congressional Review Act (CRA)

Anti-clean energy forces tried to mislead Congress to force the repeal of the two-year solar tariff moratorium. However, since 2021, the solar industry has seen more than 255,000 jobs and generated nearly $33 billion in private investments in the U.S. economy while tariffs were paused. When the House representatives presented the CRA to repeal the moratorium and enact backdated tariffs, it threatened the progress made in clean energy. The industry acted to educate Congressional Members and President Biden’s veto was a commitment to business certainty in the clean energy transition, allowing project development to continue while creating a bridge to a domestic manufacturing future.

2 Policy Advancements

Thanks to the support of the Inflation Reduction Act (IRA), the U.S. solar and storage industry is on track to grow from 5% of U.S. electricity generation today to 20% by 2030. In less than a year, the IRA has achieved more for domestic solar manufacturing than any program or policy over the last decade. In the last year, the industry has witnessed over 65 gigawatts of clean energy manufacturing announcements . As a result of the IRA, the solar industry is projected to add $600 billion to the economy by 2033 and is forecasted to grow to 700 gigawatts of solar, about 5 times the amount of solar deployed today. Earlier this month, President Biden visited a new facility in South Carolina touting the growing number of components being produced domestically. Earlier this month, President Biden visited a new facility in South Carolina touting the growing number of components being produced domestically.?

Additionally, we are seeing more regional policies follow suit in the direction the IRA has set in the industry. For example, in the Mid-Atlantic Maryland passed legislation to create a Permanent Community Solar Program and tasked the Maryland Public Service Commission with establishing a Maryland Energy Storage Program with an ambitious 3,000 MW by 2033. In the Midwest, Minnesota celebrated the passage of a 100% carbon-free electricity by 2040 standard, a historic $80 million investment in solar + energy storage incentive programs, and a significant revision of the state’s community solar program, which will increasingly be accessible to more residential subscribers, specifically low-to-moderate income (LMI) households, and expands the project sites from 1 MW to 5 MW community gardens. And hopefully, more policy wins are on the way. If HB 197 passes, Ohio would become the 24th U.S. state with a statewide community solar program. A new analysis from the Ohio University Voinovich School of Leadership and Public Service’s Center for Economic Development and Community Resilience finds that a state “Ohio Community Solar Pilot Program” could contribute nearly $3.49 billion in gross state product (GSP), 27,254 Ohio job years with total earnings of $2.48 billion, and $409.5 million in local tax revenue over its lifetime.

3 The Data Doesn’t Lie

The Solar Energy Industries Association and WoodMackenzie recently released its Q2 2023 market report and, as a result of a record quarter, the solar market is on track to triple in size over the next five years. Some top takeaways from their report were:?

• The residential solar market added 1.6 GW in Q1 of 2023, a 30% increase from Q1 last year.
• The commercial solar segment installed 391 MW in the first quarter of 2023, putting the segment on track for 12% growth this year.
• The community solar segment installed 212 MW, a 13% decrease from Q1 2022 due in large part to ongoing interconnection challenges.
• The utility-scale segment rebounded from a difficult 2022 with a strong first quarter and a record 3.8 GW of installed solar capacity.

Combined, this tells us that the market is ready to continue increasing its capacity in the production, manufacturing, and distribution of clean energy.?

Conclusion

Across the U.S. we’re seeing significant progress that challenges significant progress that challenges the way our government is thinking about climate action. The fight continues among our representatives to hold the IRA in place to foster the continued growth in clean energy. These signals, from President Biden’s veto to the economic benefits due to the IRA to local policymakers advancing clean energy - the development of solar and storage projects is ready for more. I’m looking forward to continuing to grow solar and storage in the U.S. through critical partnerships and advancement in clean energy policy.?

Our commitment at CleanCapital is to reach our next billion in deployed capital and continue the advancement of clean energy. Our recent, and largest, raise with Manulife Investment Management is just step one to get there and we are ready to bring a new wave of capital into solar and storage projects across the country. If you are a developer or owner of renewable energy assets or a fellow clean energy professional, let’s connect!