Due to the increasingly competitive costs of deployment combined with lucrative tax credits from the Inflation Reduction Act of 2022, the development pipeline for grid-scale solar has swelled to 261 GW. Based on this solar queue and projected commissioning timelines, solar is poised to overtake wind as the dominant clean energy generation resource in the US within the next five years.
Persisting inflation and high-interest rates are complicating long-term project financing for grid-scale projects. Interconnection queue logjams are resulting in increasing delays in permitting and interconnection phases. Investment and legislative efforts to address these concerns will take time.
How would these factors impact on US solar investment outlook in 2024?
Image for illustration purpose only.
