The Inflation Reduction Act, signed into law last week, provides substantial support for the growth of clean energy across the country. Read on to learn how energy policies are changing, and what new incentives are available to companies and organizations looking to mitigate their carbon footprints and operate more sustainably through clean energy solutions.
Under the act, the Investment Tax Credit (ITC), which has been a vital policy for the adoption of solar energy across the U.S., has been extended until 2032. The main considerations to note are as follows:
The act also opens up more opportunities and greater flexibility for battery energy storage systems and other clean energy technologies, including microgrids. These additional provisions include:
Electrification of the transportation sector is another priority within the act to help reduce greenhouse gas emissions. It provides additional funding for EV charging installations that meet the following criteria:
The act increases the financial flexibility of clean energy projects. We now have the option of transferring the credit to another tax-paying entity. And if you’re a tax-exempt entity, local and state government entity, or a tribal community, you may be eligible for direct pay (i.e., receive the credit in cash).
If you have any questions about how this act impacts current or future clean energy projects, feel free to reach out to us. PowerFlex’s team has extensive experience with project development, engineering design, financing, and system installation. We help clients navigate complicated energy policies and incentive structures to ensure the maximum return on investment (ROI) for each project. Our proprietary PowerFlex X software can integrate and co-optimize multiple onsite clean energy technologies (solar, EV charging, battery storage) while providing real-time insights into system performance and easy reporting of data. We stay on top of the latest changes in policy and incentives, so our clients can rest assured that they are utilizing and tracking all available incentives when installing and operating a clean energy solution onsite. To learn more, contact us today.Contact Us Today!