How the renewable energy market will benefit from the Inflation Reduction Act
On 15th August, The Inflation Act successfully passed through congress which will see more clean energy, less dirty energy, new punishments for methane leaks and billions of dollars for communities most in need of climate-related help.
This bill is being described as “transformative” and something that has been in culmination for decades to make meaningful climate legislation. It will be pivotal in cutting emissions and will help the US economy make the transition away from fossil fuels and reduce greenhouse gasses by 40% below where they were in 2005 by 2030.
The package calls for major spending to tackle the climate crisis and aims to expand renewable energy production and fund the development of technologies to remove carbon dioxide from the atmosphere.
The main facet of this bill locks in tax credits for the next decade for solar and wind energy, which were previously limited to one to three years. It’s a move that will also help spur economic growth within sectors within clean energy and it has been reported that this new injection of investment will create 9 million more green jobs in the next decade – an average of 1 million jobs per year. Additional funding will help support:
Production tax credits to help US manufacturers accelerate production of solar panels, wind turbines, batteries, and process key minerals
$10 billion investment tax credit for new manufacturing facilities that make clean tech like EVs, wind turbines and solar panels
$500 million to use the Defence Production Act to speed up the manufacturing of things like heat pumps, as well as processing critical minerals
$2 billion in grants to help automaker facilities transition to clean vehicle production
Up to $20 billion in loans to construct new manufacturing facilities for clean vehicles.
The Inflation Act is set to position the US as a global leader in what an effective fight against climate change looks like. Companies across the States who service the energy industry have already started to make heavy investments. For example, the solar industry is investing more money in their manufacturing facilities to ensure they are well prepared and are working towards the changes this act will enforce. Something which Spencer Ogden are well-positioned to help support and provide market-leading recruitment guidance.
These next few months will see big changes for the renewables industry in The Americas and Spencer Ogden are to engage and support their current and future clients through these changes.
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