The historic Inflation Reduction Act was signed into law Tuesday, August 16th by President Joe Biden. The Act has a number of ambitious initiatives, including a large focus on climate and energy. But what does it all mean for renewable energy and for consumers considering their energy options?
Commercial and industrial customers can look for massive tax credits to become available from both federal, state, and utility programs. Incentives for fostering innovation and growth for clean technology development will bring new solutions to the market and drive down the cost of deploying advanced energy options. Properties in targeted high-need regions will receive extra support in order to help strengthen the grid and electric infrastructure. A number of pools of funding and subsequent programs will subsidize reduced emissions across the transportation sector. Companies will be incentivized to electrify fleets and choose low-carbon options.
At a high level, the Inflation Reduction Act includes almost $370 billion for climate initiatives, incentives for greater US-based energy production, and funding designed to make it easier and more affordable for energy consumers to transform consumption behaviors and for commercial and industrial customers to decarbonize. Federal funding will be allocated to support large-scale decarbonization initiatives. There is a large focus on energy security and increased domestic production, both of energy generation and distributed technologies that will enable Americans to better produce, store, and use energy. Funds will also go to resilient farming initiatives, dedicated to supporting rural communities and production as industries respond to climate change.The Act also includes funding for disadvantaged communities, prioritizing those demographics and regions often left behind in other programs. A number of other included programs and incentives will help single family households and automobile drivers transition to efficient, low-emission appliances and vehicles.
If you are interested in learning more about specific programs and funding opportunities, the team GridMarket is eager to help. As programs are finalized and rolled out across the country, there will be tremendous opportunities for decarbonization and energy infrastructure upgrades. Contact us now to learn how we can apply existing and expected programs and subsidies to transform your energy future. Our platform will quantify your opportunity, recommend the right solutions, layer in applicable funding mechanisms, and get you the best possible deal with the best available partners.