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

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

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.

17 June 2025
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 17-18 June 2025, will be our fourth PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2026 and beyond.
7 October 2025
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 7-8 October 2025 is our third PV CellTech conference dedicated to the U.S. manufacturing sector. The events in 2023 and 2024 were a sell out success and 2025 will once again gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing in the U.S. out to 2030 and beyond.

Read Next

February 13, 2025
A report from CEA says that the impact of the new Republican administration on the provisions under the IRA remains “uncertain”.
February 10, 2025
Factors including import duties and changing tax rates in China have driven up US module prices, according to CEA's latest pricing report.
February 4, 2025
The projects, with 517MW cumulative capacity, are currently under construction and expected to begin operations by the end of 2025.
February 4, 2025
Indian solar manufacturer Premier Energies has put under review its plan to build a solar cell plant in the US due to policy uncertainty.
February 3, 2025
The portfolio comprises two projects: the 163MW Starr Solar in Starr County and the 125MW Second Division Solar project in Brazoria County.
January 29, 2025
Nextracker has published its 2024 financial results, which include revenue of US$679 million in the quarter ending 31 December 2024.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
February 17, 2025
London, UK
Solar Media Events
February 19, 2025
Tokyo, Japan
Solar Media Events
March 11, 2025
Frankfurt, Germany