Impact of the Inflation Reduction Act on the Clean Energy Market

The passage of the Inflation Reduction Act (IRA) has significantly changed the landscape of the clean energy market. It has made viable a range of renewable energy projects that were previously not feasible, such as renewable natural gas, sustainable aircraft fuel, renewable diesel, standalone storage, and carbon capture. However, the cost of capital has also increased, leading to higher capital costs and lower capacity factors for solar and wind projects. While the IRA provides long-term stability, there are still challenges in the short-term as many projects struggle to secure financing.