“A look at how the renewable energy opportunity may and may not change. US president-elect Donald Trump’s planned tax and trade policies may alter investment opportunities in renewable energy. It won’t, in our view, put an end to them. Renewable energy is the fastest-growing source of electricity in the United States, and technological advances and investment in clean energy infrastructure have helped make it among the cheapest sources, too. That may change if Congress raises tariffs on goods from China, the largest producer of solar panels and the lithium-ion batteries used in utility-scale energy storage. There’s also the possibility that an incoming Republican president and Congress will roll back some of the renewable tax credits in the Inflation Reduction Act (IRA). Since it was adopted in 2022, the law has supercharged clean- energy investment, which hit a record $71 billion in the third quarter of 2024. But while federal policy is a key consideration for investors, it isn’t the only one with the power to shape potential risks and returns. State and local policies matter, too—and these helped to drive clean energy development during the first Trump administration. Today, renewable technologies such as solar and wind are cost-competitive with conventional energy generation even without tax subsidies.”
Morten W. Langer
