Renewable Energy Trends & Challenges

Our Cohen & Co team had the opportunity to recently attend RE+, the largest clean energy event in North America. The conference underscored the sector’s rapid evolution in complexity and opportunities, and touched on trends topping the list for industry participants. Below are a few of our takeaways.

Where the Renewable Energy Market Stands Today

Renewables continue to accelerate with no indication of slowing down. Solar remains a dominant theme, but wind and hydro appear to still outweigh utilization. Storage is increasingly at the forefront of conversations, pointing to a more integrated energy future. Across the board, industry participants are emphasizing the importance of embedding renewables into the broader economic conversation, rather than treating them as a siloed or “standalone” issue.

Where the Industry is Focused (or Should Be) for the Future

1. The Central Role of Tax Credits. Tax considerations are driving the market. Tax credits remain the cornerstone of project feasibility, with tax debt and tax equity financing structures growing in importance. Renewable energy companies need a solid team around them to navigate the technical, compliance and strategic aspects of these evolving vehicles.
2. Life After Subsidies. Much of the growth in renewables to date has been fueled by subsidies. As these supports phase out, industry participants will face new pressures. Tools such as financial modeling, scenario analysis and long-range planning will be critical in helping businesses navigate a post-subsidy environment with confidence and clarity.
3. The Rise of Storage. While solar continues its upward trajectory, energy storage is becoming a central part of the conversation. This represents not only a technology shift, but also a financing and regulatory challenge that will require nuanced support.
4. M&A Readiness. Renewable energy companies are moving fast, but their infrastructure, processes and support systems are often not keeping pace, particularly when it comes to M&A. Many struggle with disorganized deal flow, slowing their path to letters of intent and getting the deal done. Businesses will need to evaluate deals more efficiently and consistently to stay on track. Additionally, as private equity and project finance players deepen their focus in renewables, demand for quality of earnings (QoE) reporting will increase. Using an experienced team of financial advisers will be important to renewable deals of the future.

Looking Ahead

The renewable energy market is no longer a niche — it is becoming a cornerstone of the global economy. As the industry transitions from subsidy-driven growth to market-driven fundamentals, the challenges are becoming more complex and interconnected. Success will increasingly depend on the ability to integrate financial, tax and operational strategies in real time, while anticipating regulatory and market shifts.

Stay tuned for our upcoming technical insights and perspectives that dive deeper into key themes such as Foreign Entity of Concern (FEOC) restrictions and the Prevailing Wage & Apprenticeship (PWA) requirements — both of which are reshaping how the industry structures and finances projects. These topics, and others, will be central to ensuring renewable energy businesses are not only compliant but also positioned for long-term growth.

Contact Camille Clemons or a member of your service team to discuss this topic further.

In this blog Cohen & Co is not rendering legal, accounting, investment, tax or other professional advice. Rather, the information contained in this blog is for general informational purposes only. Any decisions or actions based on the general information contained in this blog should be made or taken only after a detailed review of the specific facts, circumstances and current law with your professional advisers.