Study shows high investor confidence in renewable energy
A report by the American Council on Renewable Energy (ACORE) reveals high confidence for renewable energy growth and an appetite for increased investment by financial institutions.
The report — which tracks ACORE’s campaign to reach $1 trillion in U.S. private sector investment in renewable energy by 2030 – shows that the industry is on its way toward that objective. Last year, the private sector invested more than $56.7 billion in U.S. renewable energy and grid technologies.
“Renewable energy remains one of the most attractive investment options in America today,” ACORE President and CEO Gregory Wetstone said. “Over the long-term, however, the renewable sector is going to need predictable policy drivers, competitive power markets and a modernized grid to meet its potential and answer Americans’ growing calls for a clean energy economy.”
The report showed that investor confidence in the U.S. renewable energy sector is at 77 out of 100. Further, more than one-third of survey respondents said they plan to increase their investments in U.S. renewables by more than 10 percent in 2019 compared to 2018. No respondents said they would decrease their investments by more than five percent.
Solar and energy storage were the most attractive renewable energy investment options, followed by onshore wind. Investors cited the low cost of renewable energy, expanded state renewable portfolio standards, increased demand from corporate users, the potential for new carbon legislation, and tax credits as the main reasons for optimism over the next three years.
The report added that a number of federal legislative proposals — including a new tax credit for energy storage, new national renewable energy and clean energy standards, a federal price on carbon emissions, and a technology-neutral tax credit for carbon-free electricity generation – could further spur investment.
