Deloitte: Renewable Energy Industry Outlook 2023

U.S. renewable energy growth slows in 2022 as supply chain disruptions, trade policy uncertainty, inflation, rising interest rates, and interconnection delays lead to higher costs and project delays. Many of these challenges are likely to extend into 2023, creating strong headwinds. But growth could accelerate, driven by strong demand and the record-breaking amount of clean energy incentives in the Inflation Reduction Act (IRA).

Growing demand in 2023 is likely to exacerbate supply chain constraints and interconnection bottlenecks, further pushing up prices and extending project timelines.

Five renewable energy industry trends to watch

Growing clean energy component manufacturing could ease supply chain hurdles over time

U.S. manufacturing is currently unable to meet the renewable energy sector’s demand for clean energy components supported by a secure and sustainable domestic supply chain.

New clean hydrogen economy could open the way for renewable energy suppliers

Long-standing interest in green hydrogen was ignited with the enactment of the IRA in August 2022. The law provides a $3 per kilogram tax credit on qualifying “clean” hydrogen, which could make it price-competitive with higher-carbon “grey” hydrogen in much of the country.

IRAs help incentivize renewable energy providers to pursue opportunities in low-income communities

So far, the clean energy transition has focused largely on wealthier Americans, who benefit from incentives like rooftop solar or tax credits for electric vehicles, while many low-income communities have been left behind.

Renewable energy industry focuses on managing growing cyber risks

One sign of the renewable energy industry’s maturing is that it is increasingly being targeted by cyberattacks.

Offshore wind industry tackles challenges to achieve rapid growth

The U.S. offshore wind project development pipeline has grown to more than 40 gigawatts (GW) of potential capacity by mid-2022 across 12 states. Currently, only 42 megawatts (MW) of capacity is in operation, with about 1 GW under construction and nearly 19 GW in the permitting stage. Another 20 GW is in the site selection and planning stages and may take years to develop. The next few years may therefore be critical in addressing challenges to unlock growth.