The 2024 U.S. presidential election has ushered in a new Republican administration, raising questions about the future of renewable-energy subsidies under the Inflation Reduction Act (IRA). While president-elect Donald Trump has suggested revisiting unspent IRA funds, we believe the economic and political realities make significant retroactive changes to renewables subsidies unlikely.

Subsidy stability and growth potential

The U.S. renewables sector has already transformed dramatically, supported by decreasing technology costs. Moreover, the IRA’s incentives for renewables, including tax credits for solar, wind and energy storage, have catalyzed a surge in clean-energy development. According to Bloomberg New Energy Finance, in 2024, the United States added 56 gigawatts of solar, wind and storage capacity, while the pipeline includes 1,100 gigawatts of additional capacity throughout the next 10 years.

The IRA has yielded bipartisan benefits, wi