7.8Industry

Renewable Energy

Developers, owners, and operators of solar, wind, geothermal, biomass, hydrogen, and energy storage assets and projects.

10
Segments
44
Verticals

Overview

Renewable Energy covers the development, ownership, and services side of the energy transition — solar and wind project development and generation, energy storage, and the emerging frontier of hydrogen, carbon capture (CCUS), renewable natural gas, geothermal, biofuels, and carbon markets. It is among the fastest-growing and most heavily-invested areas of the economy, propelled by the Inflation Reduction Act (the largest climate investment in U.S. history), corporate clean-power demand, and decarbonization.

Renewable generation is now the cost-competitive, fastest-growing source of new electricity capacity, while the transition frontier (hydrogen, CCUS, RNG) is pre-scale but rapidly funded by IRA tax credits and private capital. The sector attracts enormous infrastructure, private-equity, and venture investment. Renewable power generation is sized under Power Generation and renewable equipment under Clean Energy Equipment Manufacturing; this sector emphasizes development, services, and emerging transition industries.

Market snapshot

Market size
~$22B
Growth
~13.8%CAGR (2017–22, nominal)
Companies
~730 firms
Firms by employee count

78.7% of firms have fewer than 20 employees: 572 micro-businesses, below most mandates.

The investable universe155 firms with 20+ employees
20–99
6039%
100–499
2818%
500+
6743%

The fastest-growing generation class in the country, and the only one adding capacity faster than the grid can absorb it. What is measured here is generation revenue only — the equipment is manufactured elsewhere and the development margin is taken before an asset reaches this line, so the figures understate the capital moving through the sector.

NAICS 221114, 221115, 221116, 221117. U.S. Census Bureau — 2022 Statistics of U.S. Businesses; U.S. Census Bureau — 2022 Economic Census.

Business model & economics

Revenue model

Project development, PPAs, generation, and transition services

Key economics

Revenue per firm
$29,926,715
Revenue per employee
$1,056,101
Employees per firm
27.5
Recurring revenue
Moderate–High

long-term PPAs and contracted offtake

EBITDA margin
Project- and policy-dependent; contracted infra economics
Capex intensity
High

Characteristics

  • Scale-driven — payroll is only 11% of revenue; the cost base is assets, not headcount
  • Moderate strategic-buyer pool — 67 firms exceed 500 employees; a scaled asset has buyers, but not many
  • IRA the largest climate investment in U.S. history.
  • Renewable generation now cost-competitive and fastest-growing.
  • Hydrogen, CCUS, and RNG the funded transition frontier.

NAICS 221114, 221115, 221116, 221117. U.S. Census Bureau — 2022 Statistics of U.S. Businesses; U.S. Census Bureau — 2022 Economic Census.

M&A deal context

Deal activityHigh

Who’s acquiring

  • Renewable developers & IPPs
  • Infrastructure funds & investors
  • Energy majors & corporate buyers

What’s driving deals

  • IRA tax credits and policy support.
  • Corporate clean-power and decarbonization demand.
  • Project-development and transition-tech investment.

Segments in this industry

Find Renewable Energy acquisition targets

Search Acquisera’s index for companies classified under Renewable Energy (7.8) and build a targeted deal pipeline.

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