Financing the renewable energy sector in the US viola-funding June 5, 2023

Financing the renewable energy sector in the US

Investment expansion in the renewable energy sector in United States coincides with the leading global trends and reflects the efforts of the state and business in building a modern sustainable economy. United States of America has all it takes to become one of the leaders in the development of RES in the world, in the coming decades, but the country still has a long way to go. Currently, energy sector relies heavily on large thermal power plants that were built and expanded in the 1980s and 1990s.

However, financing for renewable energy sector in the United State is growing every year, driven by fossil fuel prices and the introduction of strict environmental standards.

The basis for future development is solar PV and hydropower  plants, which take advantage of powerful solar radiation and vast sparsely populated areas, ideally suited for the construction of energy facilities.

solar energy in the US

Viola funding Limited offers long-term investments for the renewable energy sector (RES) in the US, including loans for the construction of large solar plant project

Viola Funding Limited is an international lending and Finance company domiciled  in Guernsey. We specializes in financing large investment projects, including RES facilities of various types. In particular, we offer long-term investment loans for the construction of large solar power plants and wind farms in the US. We provide project finance and financial engineering services, as well as provide loan guarantees to our clients. Contact us for details.

Investing in RES Sectors of United States; A recent venture

Globally, there has been a steady increase in green energy production in recent years. Between 2010 and 2019, global RES capacity doubled from 1,226 to 2,537 GW, according to data from the International Renewable Energy Agency (IRENA).

However, clean energy sources have not been adopted to the same extent by different countries of the world, with an obvious concentration of RES investments in the Northern Hemisphere, whilst in the Southern Hemisphere countries, they show slower development.

Large-scale renewable energy financing will help the United State to meet its clean energy goals by increasing energy security, attracting investment and growing her economy, and alongside creating profitable and befitting creating employments. Investments in renewable energy projects also appear to be the most cost-effective way to electrify rural areas of this large agricultural country and improve the quality of life of local communities.

Renewable energy and Natural Resources in the US

Government and business have increasingly become involved in financing new ways of producing energy with lower economic cost and less negative impact on the environment. Among the variety of renewable energy sources being developed in the US hydropower, wind, solar and geothermal energy are the most common.

United States is ideally geographically positioned to become an important regional center for the development of renewable energy. Thanks to natural resources and active state support, the country produced more than 86 TWh of green energy in 2021, which is 26.7% of all electricity production.

The growth of funding for hydropower in USA has not kept pace with the development of other renewable sources, so the share of hydropower in annual electricity generation has fallen from 20% to 8% compared to the 1990s.

Styles in financing renewable energy projects in the US

It is important to note that the energy sector produces more than 40% of these gases. Therefore, every day it becomes more necessary to finance and implement renewable energy projects in US, that involve reducing greenhouse gas emissions and ensuring a sustainable future. Fiscal incentives for RES development have been established in Mexico since 2004.

In the United States, solar power plants, wind farms and other RES projects are financed by loans from large banks, resources of investment funds, as well as long-term instruments from international financial institutions (IFIs). Commercial banks are less involved in financing RES projects in USA, because they are bent in offering too high interest rates and shorter financing terms.

If you are interested in long-term financing for renewable energy projects in the United States, kindly make your contact and our underwritten team will address you with the best financing option.

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