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. 

To learn more about the risks to the expansion of solar power, be sure to download our analysis.

For more information, please contact industrials@lek.com.

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