Senate passes Inflation Reduction Act with long-term solar incentives

On Aug. 7, the Senate passed the Inflation Reduction Act, which includes tax breaks for solar and long-term storage, investments in domestic solar power production, and other critical utilities that will help decarbonize the power grid with significant commitment. of clean energy.

The Inflation Reduction Act is expected to reduce greenhouse gas emissions about 40% be below 2005 levels by 2030, according to The New York Times. It includes a 30% solar ITC extension for both residential and commercial/utility projects, direct payment for non-profit and government entities, a 30% ITC for stand-alone storage, solar component manufacturing credits, and more.

“Today is a monumental day for America’s progress in clean energy and global leadership on climate. With the passage of the Inflation Reduction Act in the Senate, solar and storage companies are one step closer to having the business security they need to make the long-term investments that will decarbonize the electricity grid and create millions of new career opportunities in cities. and villages across the country,” Abigail Ross Hopper, SEIA president and CEO, said in a statement.

“This legislation is the most transformative investment America has ever made in our climate future, and we are grateful to our members, the clean energy community, and all of our solar champions in Congress for their work in bringing us to this historic moment,” she said. went on. “The solar industry has set a target of accounting for 30% of all electricity production in the US by 2030, and this legislation will be a catalyst to achieve that target. Now the work can begin to build America’s clean energy economy with historic commitment, domestic production, investment in low-income communities, energy storage, smoother interconnections and much more.”

The BlueGreen Alliance estimated that the IRA’s climate and energy investments will lead to 9 million jobs in 10 years.

“This legislation shows that we don’t have to choose between good jobs and a clean environment, as some falsely claim. The Inflation Act supports both. This bill will create high-paying union jobs across the country while reducing emissions that cause climate change. It will be a game-changer in growing clean energy, revitalizing manufacturing and building resilient communities,” Jason Walsh, executive director of BlueGreen Alliance, said in a statement.

The House plans to meet again Friday to approve the bill and send it to President Biden The New York Times.

Solar Energy World will parse the official details of the bill as it goes through the federal government.

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