Big Law firms are seizing on the burgeoning demand for solar energy, driven in part by the subsidies introduced by the 2022 Inflation Reduction Act. With global investment in solar photovoltaic energy production projected to surpass $500 billion this year, the sector is moving swiftly ahead of coal, oil, natural gas, wind, and nuclear energy. Since the passage of the Act, firms like Latham & Watkins have struggled to keep pace with the influx of work. Over 650 lawyers at Latham & Watkins are dedicated to the energy transition, with global headcounts in this area growing more than fivefold in the last decade.
Many firms without established renewable energy practices are aggressively recruiting from competitors, according to Anna Kimbrell of Husch Blackwell. The demand for specialized legal expertise in renewable energy is so high that 90 of the largest 200 law firms in the U.S. have hired a lawyer with a “renewable energy” specialty over the past three years. Norton Rose Fulbright and Orrick Herrington & Sutcliffe lead in this area, with more than 40 renewable energy lawyers each.
The accelerating adoption of solar energy can be attributed to the dramatically reduced cost of solar technology. The price of solar panels has decreased significantly since 2003, dropping from over $5 per watt to less than a quarter of that cost today. This cost decline is contributing to solar achieving 92% of new energy capacity additions in the U.S. over the next two years, according to the U.S. Energy Information Administration.
Specialized legal work plays a crucial role in this sector, addressing the intricacies of tax credits, capital raising, and regulatory compliance. Kristin Seeger and Patrick Ferguson of Orrick highlight the developments in transferable tax credits as spurring an uptick in interest from large corporate clients. Innovative projects such as green hydrogen and “on-orbit” solar are no longer just theoretical but are actively being pursued.
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