Inflation Reduction Act to add an extra US$110 billion in utility-scale solar investment by 2030

Facebook
Twitter
LinkedIn
Reddit
Email
The effect of the Inflation Reduction Act for utility-scale solar will not be in full effect until 2024. Image: Nexamp.

The Inflation Reduction Act (IRA) is expected to add an extra US$110 billion in investment for utility-scale solar in the US by 2030, increasing the country’s utility-scale deployment by more than 70GW.

That is according to consultancy Rystad Energy, which now expects the US to hit 270GW of utility-scale PV by 2030, from from 200GW, due to the incentives contained within the IRA.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The act will have a significant positive impact on the US solar industry, Rystad said, but the effects will not be immediate as the sector still grapples with recent headwinds, such as the anti-dumping and countervailing (AD/CVD) investigation, the ban on polysilicon coming from Xinjiang and vast interconnection queues across the US.

The effects of the new incentives will be fully felt in 2024, according to the consultancy.

Utility-scale solar installed capacity will reach 270GW in the US in 2030 with the new legislation. Image: Rystad Energy.

Marcelo Ortega, renewables analyst at Rystad Energy, said: “The Inflation Reduction Act is a game changer for the US wind and solar industry. The tax credits in the bill will strengthen the economic feasibility of new project developments and boost the wind and solar markets’ growth trend this decade and beyond.”

Moreover, the new legislation will make the production tax credit (PTC) – which has earmarked US$30 billion to help boost domestic clean energy manufacturing – available for solar projects, with developers able to choose between this and the Investment Tax Credit (ITC).

Meanwhile, the internal rate of return (IRR) – a measure that evaluates the profitability of project investments – will increase by one or two percentage points for solar and wind project, Rystad said.

“We estimate that for a 250MW utility-scale solar project, the PTC will be the most beneficial tax credit until a 7.5% discount rate is achieved, after which the ITC will be the preferred tax credit,” said Rystad Energy.

Read Next

September 5, 2025
Research firm Rystad Energy has found that Queensland’s utility-scale solar PV power plants have dominated the best-performing assets, in terms of AC capacity factor, rankings for August 2025.
Premium
September 4, 2025
Analysis: A Biden-era policy to suspend the payment of duties on Southeast Asian module imports looks set to backfire badly on an already under-pressure US solar industry.
Premium
September 2, 2025
In August 2025, the final month of Australia’s winter, utility-scale and rooftop solar PV generation in the National Electricity Market (NEM) saw a dramatic 22.5% month-on-month increase to 3,338GWh.
September 1, 2025
The US International Trade Commission (ITC) has voted to continue the investigation on imported solar cells from India, Indonesia and Laos.
September 1, 2025
Australia’s National Electricity Market (NEM) hit a record high for the combined utility-scale solar PV and wind share in the electricity mix on 30 August.
September 1, 2025
Meridian Energy and Nova Energy have completed agreements to establish a 50-50 joint venture (JV) to build and operate the 400MW Te Rahui solar PV power plant near Taupō, New Zealand.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines