A Recap of Solar Industry Developments in 2023, and a Look Ahead to 2024

2023 was a big year for solar energy development in Virginia and throughout the country.

Some of the factors that contributed to solar growth included high oil prices, more states passing legislation mandating shifts to renewable energy sources, and significant federal incentives spurring investments through the Inflation Reduction Act (IRA) and Infrastructure Investment Jobs Act.

Deloitte recently released its 2024 Renewable Energy Industry Outlook, which includes an analysis of what it describes as significant growth in solar and storage investment in 2023. Here are a few of the highlights from its analysis:

1. $92 billion in announced investment and $52 billion in actual investment in utility-scale solar across 38 states. 
2. VC funding for solar and storage increased in the first three quarters of 2023.
3. 34% growth in actual solar investment in 2023, 51% increase in storage, and 31% increase in distributed renewables, storage, and fuel cells.

Deloitte anticipates that IRA tax credits will play a significant role in shaping solar and storage projects in 2024—particularly “adder” credits in the legislation. Generally, these adder credits can be obtained (1) by meeting specified domestic content requirements; or (2) by placing projects in “energy communities” (i.e., sites where fossil fuels previously dominated); or (3) by placing projects placed in low-income areas. Deloitte notes that the “US Treasury’s release of guidance on energy and low-income community adders in the last quarter of 2023 could be particularly relevant to community solar developers.”

The future is bright for solar development. However, challenges remain. One of the biggest obstacles for many developers, in Virginia and elsewhere, is dealing with land use and zoning challenges. 

That’s why it’s crucial to partner with experienced legal counsel who can help you navigate the land use law hurdles, development-related policies, and “people side” considerations that come into play in any public process in order to achieve your objectives. At GreeneHurlocker, our Land Use and Zoning attorneys are dedicated to representing property owners, commercial real estate developers, solar developers, and other businesses and non-profit organizations in connection with all aspects of zoning and land use approvals in Virginia.

That’s why it’s crucial to partner with experienced legal counsel who can help you navigate the land use law hurdles, development-related policies, and “people side” considerations that come into play in any public process in order to achieve your objectives. At GreeneHurlocker, our Land Use and Zoning attorneys are dedicated to representing property owners, commercial real estate developers, solar developers, and other businesses and non-profit organizations in connection with all aspects of zoning and land use approvals in Virginia.

If you’re interested in discussing the opportunities and challenges of solar development in Virginia, reach out to one of our experienced attorneys who can guide you through the process.