History should teach us not to underestimate the creativity of the US corporate office or its financial markets, nor should we underestimate the resilience of the renewable energy industry. For example, US tax equity investments in wind power projects plunged more than 80% during the 2008 recession, and the next year, in 2010, Google and NextEra Energy Resources announced the country’s first corporate PPA.
Many companies are currently facing challenges similar to those during the 2008 recession: liquidity strains, tightening credit, slower demand, and a general sense of uncertainty. Unlike the 2008 recession, however, a sizable majority of major US corporations now have publicly stated sustainability targets, including 78% of the S&P500.
With public commitments in a world of uncertainty, many corporate buyers are looking to better understand how COVID-19 has impacted the renewable energy market and how they should adapt their strategies. Though there is no “one size fits all” solution, one thing is clear: COVID-19 has not slowed demand for quality projects and offers are moving quickly. Early buyers will have the advantage as the ripple effects of the COVID-19 pandemic strain supply in the back half of 2020 and into 2021.