US Clean Energy Debt Finance Surges to $59 Billion in First Half of 2026

New debt financing for US clean energy, manufacturing and clean fuel projects climbed 12% in the first half of 2026, reaching $59 billion — up from a $53 billion tally posted across the prior six-month period. Full-year lending is now on track to total $143 billion by December, a 19% rise over the 2025 annual figure, according to a Crux report.

Multiple forces are driving the expansion: surging electricity demand, capital spending tied to artificial intelligence infrastructure, tightening energy supply conditions, shifting federal policy, and a rapidly maturing battery storage market. Analysts say the clean energy capital market has adapted to regulatory uncertainty and entered a new growth phase.

Tax credit monetization is expected to approach $70 billion for the full year. Transferable tax credits alone reached $21 billion in the first half. Solar’s share of that market slipped from 35% to 30%, however, as projects ran into permitting bottlenecks and stricter Prohibited Foreign Entity (PFE) compliance rules.

Standalone battery storage projects expanded their share of transferable credits to 7%, while combined solar-plus-storage deals rose to 12%. PFE risk has become the dominant factor shaping deal pricing: credits fully cleared of PFE exposure command a premium of $0.015–$0.020 per dollar, reflecting scarce supply against strong demand.

Higher debt costs and compliance premiums are pressing developers to revisit project economics. Power purchase agreement prices for solar and wind could rise by $15–20 per megawatt-hour as subsidies phase out. Looking ahead, load growth from data centers is expected to lift off-peak electricity prices, improving revenue prospects for both solar and battery projects.

Source: PV Magazine USA