The Trump administration is not likely to stop the growth of the renewables market in the U.S. The tax incentives rolled out during the Obama administration have served their purpose and the lion is now out of its cage. Renewables are here to stay.
Renewables have been growing in developed and developing markets over the last decade. Why? Falling costs thanks to advancements in technology, first with wind power and evolving with solar in recent years. In fact, more efficient technology has made renewables competitive to the point that the phasing out of incentives has begun. Over the past decade, investors have gained confidence in how these sources of energy can be predicted. And the more costs continue to decline for renewables, the more they will take market share away from the traditional energy markets.
Proof of the sector’s staying power, and solar in particular, rests with the very ratings Fitch assigns to these projects and how stable they have performed over time. Whereas the somewhat uneven rating performance of wind projects belies a market very much in its infancy and trying to find its footing, Fitch-rated solar projects have been upgraded over the last year and are emblematic of a renewable energy source that has ironed out the proverbial kinks in recent years.