With the passage of the Inflation Reduction Act (IRA), renewables installations in the U.S. are forecast to grow at a rapid rate through 2027, with utility-scale solar capacity additions projected to grow at a compound annual growth rate (CAGR) of 27% from 2022 and wind capacity additions at a CAGR of 26%.
But when one considers surging interconnection queues, the increasing lack of available energy performance contracting-related labor, critical shortages in equipment and a dearth of interregional transmission lines, an unconstrained view of demand isn’t necessarily a reasonable assumption to make.
Take solar. While historical dynamics and expectations that the IRA will be a key driver are currently powering growth, there are concerns about whether supply chains and regulators are prepared to take on the expected growth.
To learn more about the risks to the expansion of solar power, be sure to download our analysis.
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