Both the US Senate and House of Representatives voted to enact the Inflation Reduction Act of 2022. It now must reach President Biden’s desk, where he is expected to sign the bill into law.
Inside the massive energy, climate, and tax bill is $600 billion in spending, $370 billion of which is focused on supporting renewable energy buildout and climate resilience. The spending will be supported by closing tax loopholes on the wealthiest Americans and corporations.
The legislation contains numerous provisions to support the US solar industry, including a long-term extension of the federal investment tax credit, significant domestic manufacturing incentives, labor standards, production credits and more. Below are some reactions from around the industry:
“What an historic moment for our country! Sunrun applauds everyone in Congress and the Biden Administration who helped accomplish this major step forward for humanity. The Inflation Reduction Act will combat inflation, lower energy prices and help our country meet its climate goals. It will boost U.S. manufacturing, create millions of good-paying jobs, expand access and equity for those who need it most, and improve grid stability and resilience. The need for families to take control of their energy and for broader U.S. energy independence has never been clearer. All of us at Sunrun are focused on scaling as fast as humanly possible to provide customers with a more affordable, clean and resilient way to power their homes and lives.” Mary Powell, CEO.
“Nextracker has been investing for years to expand our U.S. supply chain and now with the passage of the Inflation Reduction Act, it’s go time. We applaud the smart industrial policy in the IRA to create jobs, lower energy costs, and rebuild our industrial manufacturing capacity.” Dan Shugar, CEO.
Baringa Partners US
“This amounts to clear supply and demand side incentives that will enable the U.S. to build clean energy technology at a blistering pace while also investing in the necessary domestic manufacturing capability – a measure key to enhancing energy security.” John Baron, senior consultant, energy.
Advanced Energy Economy
“This era-defining agreement should mark the beginning of the end for fossil fuel dominance in America. Thanks to the Inflation Reduction Act, clean energy technologies will be fully unleashed. Clean energy manufacturers and developers alike will now have the right financial tools and the policy certainty they need to produce and buy the components that power these innovative technologies here in America. That’s going to translate into millions of family-supporting jobs and billions in energy savings for American households.” Nat Kreamer, CEO.
American Council on Renewable Energy
“We have waited many years for this moment. With House passage of the Inflation Reduction Act of 2022, Congress has acted to address the climate crisis and accelerate the transition to renewable energy. For more than a century, our tax code has been weighted to promote fossil fuels, but now we’re just a presidential signature away from a level playing field that will unleash dramatic clean energy growth. We cannot say that this bill alone will achieve our climate goals, but for the first time, it puts us on the path. For our part at ACORE, this is the culmination of years of determined efforts alongside our members and many allies. We look forward to working with the Biden administration as they implement this historic achievement, and work to build on it with additional measures to reduce greenhouse gas emissions.” Gregory Wetstone, president and CEO.
Southern Environmental Law Center
“We applaud the House and Senate for taking bold and necessary action to pass this historic legislation, which is far from flawless but overall represents a promising and necessary step forward. This bill lays the foundation for Southern communities and individuals alike to take tangible and feasible steps to address the impacts of climate change, all while boosting local economies and advancing us toward cleaner, more affordable energy options. We look forward to moving these policies into practice to cut carbon emissions, improve energy efficiency commitments, and open access to clean energy across the board, and we’ll be ready to fight anything resulting from this that could harm Southern communities.” Nat Mund, director of federal affairs.
“The passage of the Inflation Reduction Act by the US House of Representatives is a victory for America. First, it represents a once-in-a-generation opportunity to achieve energy security and to ensure that the fight against climate change is powered by solar technology that represents American values and principles and is produced here, at home. Second, it’s an opportunity to ensure that the benefit of this groundbreaking legislation is shared, creating jobs and economic value where needed most. And finally, it will facilitate the cycles of innovation necessary to ensure our country’s leadership in clean energy technology, ensuring that the next generation of solar technologies is developed and made by America. Once signed into law by President Biden, we expect that this legislation will be the cornerstone of our country’s transition to a truly sustainable, decarbonized future.” Mark Widmar, CEO.
Ultra-Low Carbon Solar Alliance
“For the first time in decades, we have a meaningful policy to support not just using solar energy but making solar products here in the USA. This bill is a major step forward for energy independence and catalyzes the growth of a sustainable, resilient low-carbon solar supply chain by spurring much-needed expansion of domestic solar manufacturing. The Ultra Low-Carbon Solar Alliance welcomes the House passage of the Inflation Reduction Act of 2022 and looks forward to it becoming law.” Michael Parr, executive director.
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This will enable the US to build clean energy supply. Thank you Congress for the great bill.
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