The US election may have a considerable impact on the sector.

The victory of Joe Biden in the US presidential election has prompted a rethink in the US approach towards the renewables sector as well as more widely in the battle towards climate change.

Biden intends to rejoin the Paris agreement, after former President Trump famously quit the agreement, which sets out a set of climate change targets, with the aim being to keep global average temperatures below an increase of 2 degrees celsius above the pre industrial levels.

With Biden pledging to rejoin the agreement, this could lead to a substantial realignment in the US position vis-a-vis climate change, with the US potentially returning to a position of global leadership.

Regarding the renewables industry, which actually grew under the Trump presidency, Biden is committing the USA to a set of highly ambitious renewable energy goals.

His plan is for the USA to reach 100% carbon free electricity generation by 2035.

How this will be achieved will be through a massive investment in the renewables sector, said to be in the $2 trillion region.

These will include measures such as tax credits for renewable energy developers and an investment in R&D into battery storage.

Biden also intends to create jobs in the car industry through a US network of electric car charging points, as well as the maintenance of the cars themselves.

Given the infrastructure spending projects, as well as the plans to rejoin the Paris agreement, the election of Biden should result in a boom for developers and investors in the US renewables industry.