Once-in-a-Century Growth in Energy Demand

Can you describe how institutional investors’ appetite for clean, renewable energy has evolved over the years and why solar is an attractive long-term asset?

Over a decade ago, renewable energy was viewed as a nascent but promising market. At the time, many investors considered these assets high-risk due to unproven technologies and uncertain demand. As a result, capital flowed primarily from private equity sources, often at higher costs. As the market matured, technologies like solar became more efficient, and consumer demand for clean energy surged. This evolution has steadily increased institutional investors’ appetite in the sector. Solar energy, in particular, has emerged as a reliable investment in infrastructure, with investors shifting from cautious exploration to active portfolio integration.
Over the past 10 years, solar has become a sought-after long-term asset class. Development costs have declined, deployment timelines have shortened, and energy output has improved. These advancements have translated into predictable, steady returns — making solar an attractive option for pension funds, life insurance funds, and other investors. Today, solar is the fastest and most affordable way to bring electrons to the grid. Compared to traditional energy sources, solar is 25% less expensive per megawatt than gas-fired combined cycle plants, underscoring its cost competitiveness. Even amid federal policy uncertainty, the demand for solar projects continues to grow because these assets offer durability, scalability, and resilience — qualities that make them ideal for investors seeking stable, future-proof opportunities.

You also highlighted the lack of clarity in current energy policies, often creating confusion. What is needed from state and federal policymakers to provide the certainty necessary to drive investment, energy generation and economic growth?  

America is experiencing a once-in-a-century growth in energy demand after decades of steady state growth. A recent study by the National Electrical Manufacturers Association predicts that U.S. electricity demand will increase by 2% annually and reach up to 50% by 2050, primarily driven by the growth of AI, data centers, and the electrification of transportation. This growth in demand needs every type of electron we can bring to the grid today so that we can compete with countries like China. Unfortunately, recent politics in Washington have been working to undercut the renewable energy supply, which provides the same share of the U.S. energy mix as coal. Investors know that certainty in policy drives investment while catalyzing job creation and enabling energy security and economic growth nationwide.  
Current energy policies are reducing our available energy supply on the grid while fanning the flames of energy demand. The result of this supply and demand discrepancy, combined with tariff wars and supply chain constraints, is causing the current rate hikes on energy bills for Americans. State a federal policymakers need to remove the political volatility from energy policy for the U.S. to compete on a global scale against countries like China. Investors need confidence that the commitments they make will endure beyond election cycles. America needs energy pragmatism to ensure that we have every electron possible on the grid as quickly as possible, or soon energy costs will become both an economic hindrance and a driver of inflation. Policymakers across aisles and states need to prioritize an all-of-the-above energy strategy rather than a “winners and losers” approach in energy generation.  

Do you have any unique predictions on the outlook of solar and energy storage?  

There needs to be actual recognition for the drastic increase in energy demand driven by AI. Because of this demand, technologies that bring electrons to the grid – and fast – are going to become the commodity of investments. In other words, solar and energy storage are here to stay because they are the fastest and most cost-effective ways to integrate electrons into the grid.  

For our country to achieve American energy dominance, an all-of-the-above strategy is required – including renewable energy, nuclear, and fossil fuels. These various sources of energy complement each other, helping to increase the overall supply and lower the cost of energy. Our current policy lacks this strategic approach.
Energy infrastructure is still a state-level market, though, and we will hopefully see states working to accelerate the adoption of new projects. Those states need these new electrons to attract data centers, new manufacturing, and more, and their demand for what we supply continues to grow. Ultimately, solar + storage will evolve from an energy solution into a critical infrastructure backbone for the modern grid.