$350B plus in microgrid, EV & clean energy incentives
Supporters of the $750 B Inflation Reduction Act strongly believe that it will reap huge dividends in the battle against climate risk.
Image source: T&D World
USA, Washington, D.C.: Supporters of the $750 B Inflation Reduction Act strongly believe that it will reap huge dividends in the battle against climate risk.
On 16 August 2022, president Biden signed the IRA into law, while West Virginia Sen. Joe Manchin helped usher in a massive package of tax credits and incentives for clean energy technologies. The White House’s most recent statement in relation to this event said that Biden worked hard to deliver the achievement of such a big significance, both for the quality of lives of the American citizens, as well as for the economy in general.
Many believe that a lot of work is needed to be done on macrogrid to capitalize on the opportunities afforded by the IRA clean energy funding, while there is also a strong opinion that to ensure the IRA is fully realized, it is needed to work on the main part of the energy transition – the electric grid.
The IRA bill reinstates and expands many clean energy incentives with an estimated $370 B of new energy tax credits over the next ten years. Microgrid development could also gain an enormous market boost as the legislation includes up to 50 percent in investment tax credits and higher production tax credits for on-site clean power development. The combination of all of the impacts will cut the cost of microgrids by 10 to 50 percent.
The goal of the IRA bill is to help the country trim greenhouse gas emissions by 40 percent below 2005 levels, as the great beginning of the following decade. The bill also offers tax credits and other incentives for improving the affordability of heat pumps and electrification in the residential and commercial building sector.
Source: T&D World
#Biden administration#clean energy incentives#climate risk#Inflation Reduction Act#investment#USA