Results for: Inflation Reduction Act

Ørsted, a leading U.S. clean energy developer, announced a tax equity investment from J.P. Morgan for a portfolio of solar and storage assets in California and Texas. The portfolio includes Eleven Mile Solar Center (300 MW solar, 300 MW / 1200 MWh storage) in California and Sparta Solar (250 MW solar) in Texas. The investment represents one of the largest solar and storage tax equity transactions using a combined PTC and ITC structure since the passage of the Inflation Reduction Act (IRA). The Eleven Mile Solar Center will receive a one-time ITC for its battery storage system, while the solar farm will generate PTCs over ten years. The partnership with J.P. Morgan includes the option for tax credit transferability, allowing corporate buyers to support clean energy projects and optimize tax liability. The investment will fund the completion of both projects, totaling 550 MW of solar and 300 MW of four-hour battery storage, with commercial operations expected in 2024.

The oil and gas industry in the United States faces a dilemma: it has achieved record-breaking production under President Biden’s term, despite his policies, not because of them. The industry favors former President Trump’s energy platform, which includes more drilling and fewer restrictions. However, Trump’s proposed trade tariffs and scrapping of the Inflation Reduction Act may not benefit the industry. The Inflation Reduction Act provides funding for carbon capture and hydrogen projects, which the industry supports, despite its criticism of the act’s emission fees. The industry is also concerned about a potential escalation of the trade war with China, which could increase the cost of energy projects.

Rebates tied to home energy efficiency created by the Inflation Reduction Act are expected to start flowing to consumers within months. The federal government is issuing $8.8 billion for Home Energy Rebates programs through states, territories, and tribes. New York is the first state to receive funding, with an initial allocation of $158 million. The rebates aim to partially or fully offset costs for efficiency projects like installing electric heat pumps, insulation, and Energy Star-rated appliances. The value of the rebates can reach up to $14,000 per household, depending on the state’s program design.

To mark Earth Day, President Biden announced $7 billion in grants to help over 900,000 low-income households install residential solar power. The funding comes from the Environmental Protection Agency’s Solar for All grant competition, part of the Inflation Reduction Act’s Greenhouse Gas Reduction Fund. The program aims to save households over $350 million in electricity costs annually and reduce carbon pollution by 30 million metric tons over 25 years.