Historic Day For Climate. There is little doubt at this point that more legislation benefitting our industries has passed in the past year than in all of history combined. Getting back to the 30% ITC, standalong tax credit for storage, clean energy manufacturing, direct pay for those that need it, use of PTC for solar if desired and even more for local content. With the Senate passing the Inflation Reduction Act yesterday afternoon, these things are well on their way to you.
What’s Next? The House is poised to return from recess to vote on the IRA on Friday, sending the bill to President Biden for his signature.
A Decade Of Prosperity. The trillion dollar opportunity to build within a stable market is ahead for the solar and storage markets. We will focus on radical deployment of assets powering the energy transition that is electrification. In the next 8 years, you’ll see a majority of new vehicles, commercial and consumer, become electrified which will mean the need for a more resilient and intelligent grid. The ITC has been in place for nearly 2 decades causing a 90% reduction in the cost of solar to most and storage has already become one of the best investment asset classes in America, both with contracted and merchant revenue channels.
A Note On Storage ITC. The storage market today is still maturing, early days some would say. Many have not used tax equity in their projects because most projects do not have solar installed alongside their batteries. As many of you know, I have the great fortune to be the CFO of FlexGen, the leading storage integrator and software platform in the market. Over the next few months, we’ll work to educate the market on how to leverage the ITC with great bankable solutions, host visitors to our research lab in Durham and make sure that early days means happy asset owners, investors and tax equity providers.
Faster PPA Docs. Energy Toolbase has launched its newest financing integration partner, Sustainable Capital Finance (SCF), on the ETB Developer platform. This partnership enables ETB Developer users to instantly generate Power Purchase Agreements (PPA) financing quotes for commercial and industrial (C&I) and non-profit solar + storage projects without leaving the platform through SCF’s industry-leading PPA solution. Click here to learn more about this exciting partnership during a free, informative webinar on August 10th, 11am PST.
- Politico: Historic climate bill to supercharge clean energy industry
- Reuters: Analysis – Democrats’ bill will make mark on climate, healthcare costs
- New York Times: What’s in the Climate, Tax and Health Care Package
- Bloomberg: Clean-Tech Stocks Surge on Sinema’s Support for Climate Bill
- PV-Tech: Hanwha Solutions to up US solar investment if Inflation Reduction Act passes – reports
- Energy Storage News: CIT leads financing of Swell Energy’s California behind-the-meter storage rollout
- Canary Media: Could the Inflation Reduction Act revive solar manufacturing in the US?
- RMI: The Time for Radical Implementation Is Now
Opinion
Best, Yann