Critical Impact:

Ready, Set, Takeoff: Hundreds of Billions of Dollars Worth of IRA Tax Credits Are Available as of This Month 

The start of 2023 means that the IRA’s clean energy tax credits—the bill's largest slice of climate investments—are now ready for the taking. In the mere four months since President Biden signed the IRA into law, there have been enormous efforts by businesses and organizations (both public and private) to prepare to take full advantage of the IRA’s incentives. And now with a huge bulk of investments unlocked to the general public in the form of tax credits, billions of dollars will be making their way out the door and into individual pocketbooks around the country. Informational guides, a calculator to track IRA program eligibility, and 2023 predictions about the clean energy boom are just a few examples of the ways that the communication lines have begun to light up with details about how the American people can benefit from the IRA. The excitement is palpable. The next phase in the full-out clean energy transition has already begun, and now the American people get to enter the ring. 

Our take on the latest developments in the IRA’s real-world impact:
 

“As we ring in the new year, we are also ringing in a new era in the clean energy revolution,” said Evergreen Action Deputy Press Secretary Elizabeth Cavalieri. “There’s now a treasure trove of the IRA’s tax credits available to people in every community across the United States. These investments—from home electrification tax credits to rebates for EVs—will fundamentally alter our ability to defeat the climate crisis, protect the health of millions, and help create a clean energy economy that’s reliable and affordable. January 1st, 2023 marked the turning of the next page in what has been the most historic chapter of climate action in American history. And now, as American businesses and households tap into the investments available at their fingertips, we get to watch the IRA skyrocket to its fullest potential yet.”
 

Additional Impact:

U.S. Manufacturing is on the rise | The White House | 12.26.22

USDA Rural Development distributing millions of dollars in Vermont and New Hampshire | NBC5/WPTV | John Hawks | 12.16.22

“The Vermont and New Hampshire United States Department of Agriculture Rural Development distributing millions of dollars to rural communities through climate initiatives…The money is coming from the American Rescue Plan and the Inflation Reduction Act to fund the Rural Energy for America Program. 21 Vermont small businesses and farms receiving $3.3 million in loans and grants to help reduce their carbon footprint. ‘Reduce their own costs by putting solar or anaerobic digesters, or even wind and some of the underutilized renewable energy technologies to help bring their bills down, but also to help long term with climate smart economic development,’ [Sarah] Waring said.”

New clean energy investments have topped $40B since the IRA passed, report says | Utility Dive | Diana DiGangi | 12.15.22

“Clean energy investments soared in a recent three-month period, totaling $40 billion and equaling the entire amount invested in 2021, according to an industry group… ‘In just the last three months, signs of rapid growth for maturing American clean energy industries are beginning to emerge,’ ACP’s report says. ‘U.S. wind manufacturing plants that closed in recent years are bringing back workers. Plans for new solar, battery and offshore wind plants are being drawn and developed.’ ACP attributes this rapid growth in large part to the IRA, which has offered ‘companies significant opportunity to invest in new utility-scale wind, solar, and storage projects and manufacturing facilities,’ the industry group said.”

The Business Case for New Gas Is Shrinking | RMI | Lauren Shwisberg | 12.8.22

“As the dust settles following the passage of the Inflation Reduction Act (IRA), the electricity industry is only beginning to understand its true impacts. One of those impacts is the continued erosion of the business case for new fossil gas power plants. Over the past decade, fossil gas power plants became the default resource option for utility investment, making up a majority of capacity additions. While over the past few years the total capacity of plants built has declined and high-profile cancellations have increased, the IRA’s tax incentive provisions will accelerate deployment of cleaner, cheaper electricity — making gas an even less competitive choice. New RMI analysis shows just how much the IRA changes the game.”

Joint venture commits $400 million to standalone battery buildout in Texas | PV Magazine | Ryan Kennedy | 12.8.22

“Distributed standalone energy storage continues to be an in-demand technology in the Texas ERCOT region, as a new joint venture between Regis Energy Partners and Excelsior Energy Capital dubbed REX Storage Holdings committed $400 million to energy storage development in the region. The portfolio begins with the announcement of four distributed standalone 9.9 MW battery energy storage systems. Regis Energy Partners will operate as independent developer, owner, and operator, while Excelsior will act as an investment fund. The initial four battery systems are expected to come online in 2023…Standalone energy storage systems now offer greater value under the Inflation Reduction Act of 2022, which extends the 30% investment tax credit to the technology. Previously, only co-located batteries paired with renewable energy generation were eligible for the credit.”

Interested in chatting with our team more about what these impacts mean for climate and clean energy? Reach out to us at elizabeth@evergreenaction.com.