US Renewables Reset: Why Wind and Solar Still Have the Edge

Schroders evaluates the long-term prospects of U.S. wind and solar following the elimination of federal tax credits and rising political headwinds, arguing the sector remains structurally resilient.

• Despite the rollback of the IRA’s subsidies, utility-scale renewables continue to offer competitive economics and dominate interconnection queues, particularly in the MISO market.

• Short-term challenges include permitting delays, rising capital costs from tariffs, and uncertainty for domestic manufacturing.

• Strong demand growth—driven by AI, electrification, and retiring fossil assets—ensures a continued build-out of renewables, albeit with a shift toward projects that are subsidy-independent.

How can investors position around policy risk and long-term electrification trends? Dive into the full report for perspective and strategy.