A new analysis released recently by the American Council on Renewable Energy (ACORE) finds that confidence among both renewable energy investors and developers is at an all-time high. The report, "Expectations for Renewable Energy Finance in 2021-2024," presents the results of a new survey of large financial institutions and renewable energy development companies on their confidence in the sector in the aftermath of the COVID-19 pandemic.
The new report also tracks progress on the $1T 2030: American Renewable Investment Goal, an initiative ACORE launched in 2018 to help secure $1 trillion in private sector investment in renewable energy and enabling grid technologies by 2030. One trillion dollars of investment over 2018-2030 would represent more than two times the historic investment in the US renewable sector before the campaign and help put us on a trajectory toward meeting President Biden's goal of a carbon-free grid by 2035. One-sixth of the total $1 trillion campaign goal ($167 billion) has now been met, despite a 12% decline in renewable energy investment in 2020. To achieve the $1T 2030 objective, an average of $92.6 billion a year will need to be invested through 2029 – an annual increase of 59% over the 2020 investment level.
To gain a better understanding of the expected environment for renewable sector finance over the next three years, ACORE surveyed leading financial institutions and renewable energy development companies.
Key survey findings include:
In the report, ACORE outlines key policy reforms and market drivers to support the achievement of the $1T 2030 goal, including federal tax policy that provides a long-term level playing field in support of carbon-free electricity generation.