The most attractive states for renewable energy

August 22, 2013 | By Barbara Vergetis Lundin

Deployment of clean energy technology continues to rise in the United States, with renewables accounting for nearly 50 percent of added capacity, according to Ernst & Young. But some states are more attractive than others when it comes to investing in clean technology.

In 2012 alone, the United States deployed a record 13,124 MW of wind capacity and 3,313 MW of solar photovoltaic capacity. Ernst & Young's latest renewable energy attractiveness index ranks the states based on strength of the Renewable Portfolio Standard; access to finance; grant and soft loan availability; power off-take; tax climate; market growth potential; current installed base; and resource quality.

California still leads the nation in renewable energy, but Texas is not far behind, leading the nation in wind capacity. California, though, is working to ensure the long-term health of its renewable energy infrastructure through the Renewable Energy Transmission Initiative (RETI), which identifies transmission projects needed to get renewable energy power to consumers and support future energy policy, according to Ernst & Young. State policy support and a favorable regulatory environment will determine whether other states will catch up.

Hawaii, Texas, Colorado, and Nevada follow California to round out the top five in terms of attractiveness for all renewables. For wind attractiveness, Texas, Colorado, Illinois, Iowa and California make up the top five. The top five most attractive solar states are California, Hawaii, Nevada, New Mexico and Colorado.

The numbers and rankings don't necessarily tell the whole story, however.

"While overall US investment in clean energy is down, it's still ahead of annual investment from prior years," said Michael Bernier, senior manager, National Tax, Ernst & Young LLP. "What's important to note is that the $44.2 billion invested is not representative of the industry's true expansion. Solar technology, for example, is increasingly cost effective. As prices fall, the initial investment goes a lot further. $1 billion installs a lot more solar than it did five years ago."

For more:
- see the report

http://www.fierceenergy.com/story/most-attractive-states-renewable-energy/2013-08-22