March 28, 2018 Read More →

Report: U.S. Tax Incentives Will Drive $20 Billion in Renewable Capex Spending Through 2018

S&P Global Market Intelligence ($):

With incentives retained in the Tax Cuts and Jobs Act supporting the development of renewable energy, U.S. electric utilities and their competitive energy arms are moving ahead with certainty on planned solar investments to take advantage of the federal solar investment tax credit, or ITC, before it drops permanently to 10% after 2021 for commercial and utility solar properties.

Planned renewables CapEx in our analysis are forecast at approximately $9.7 billion in 2018 and are expected to rise to about $10.7 billion in 2019 as companies race to qualify for the 30% ITC for projects under construction by December 2019. Many utilities have not provided detailed CapEx plans past 2020, but considering our observations of recent years, utility investments in renewable energy, including solar, could continue to rise in the coming years against a backdrop of supportive state and regulatory policy as well as ongoing improvements in solar panel technology and efficiency.

NextEra Energy Inc., Duke Energy Corp. and Dominion Energy Inc.’s utilities are among a number of companies in the sector contemplating significant solar investments in the near-term. Other companies, including Xcel Energy Inc. and Alliant Energy Corp., are undertaking large wind projects in the near-term, but are considering ramping up solar investments in the coming years.

More ($): With eye toward growth, utilities plot ambitious solar CapEx in coming years

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