Tag Archives: Inflation Reduction Act

White House Releases Updated State Fact Sheets Highlighting the Impact of President Biden’s Bipartisan Infrastructure Law One Year into Implementation

White House Briefing Room, November 15, 2022

Since signing the Bipartisan Infrastructure Law one year ago, the Biden-Harris Administration has hit the ground running to make major progress. Today, the White House released updated state and territory fact sheets that highlight the nationwide impact of the law, the largest long-term investment in our infrastructure and competitiveness in nearly a century. In addition to announced funding to date, the fact sheets include key project highlights. Read more here.

Nebraska Fact Sheet: President Biden’s Bipartisan Infrastructure Law is Delivering in Nebraska

RELATED READING & RESOURCES

Solar and wind each added more capacity in US than natural gas in 9-mo 2022

November 8 (Renewables Now) – According to a review by the SUN DAY Campaign of data just released by the Federal Energy Regulatory Commission (FERC), utility-scale (i.e. > 1 MW) solar and wind each added more new generating capacity than did natural gas during the first nine months of 2022. Moreover, FERC’s three-year forecast suggests that installed natural gas capacity will begin to decline by fall 2025 while that of solar and wind continues to rapidly expand. Read more here.

The SUN DAY Campaign is a non-profit research and educational organization founded in 1992 to support a rapid transition to 100% reliance on sustainable energy technologies as a cost-effective alternative to nuclear power and fossil fuels and as a solution to climate change. 

ADDITIONAL RECOMMENDED READING

LinkedIn putting solar power to work

By Jason Kuiper, OPPD Blog, The Wire

Anytime a customer makes the switch to solar power, OPPD officials recognize that as a great step, no matter how big or small the investment. In the case of LinkedIn, the investment in solar power is one of the largest in the state. The company’s 121,550-square-foot, 560-kilowatt canopy solar array was installed in July 2022. Morrissey Engineering designed the carport solar array system in LinkedIn’s parking lot. LinkedIn officials said they are committed to being carbon negative by 2030, meaning they are “driving energy efficiency, accessing clean energy now, and in addition, will remove more carbon from the atmosphere than we emit across our full value chain by 2050.” Read more here.

Photo by Danielle Beebe-Iske

Reducing A Project’s Cost

The Database of State Incentives for Renewables & Efficiency provides updated information on local, state, and federal incentives

Customer-Owned Generation

More Nebraska News

Valmont Industries and OPPD Power with Purpose Partnership Strengthens the Community by Conserving Resources,
Valmont Industries News Release, Business Wire

OPPD and Valmont Utility, a Valmont company, are working together to build transmission lines to connect the Turtle Creek Station in Sarpy County and Standing Bear Lake Station in Douglas County to the electric grid.

From The White House Briefing Room

When red states go green

By Alex Robinson, Corporate Knights

“It’s not really whether we’re going to transition or not. It’s what are we going to transition to.” -Jonathan Naughton, co-director of the Wind Energy Research Center at the University of Wyoming

The Cowboy State is known for its enormous wide-open spaces, national parks such as Yellowstone, ranchers and lots and lots of coal. And yet, the energy transition is quietly happening here. According to S&P Global Market Intelligence, Wyoming had more wind-energy project capacity in advanced development or under construction than any other state in the second quarter of 2022, with 6.5 gigawatts (Chokecherry will contribute almost half of this). Wyoming isn’t alone in this regard among conservative states that have historically had fossil-fuel-focused economies. Oil-friendly Texas had the second-highest wind project capacity in advanced development or under construction, with around four gigawatts. Massachusetts – a blue state with a Republican governor since 2015 – came in third. Read more here.

High electricity rates push US homeowners to consider solar

By Anne Fischer, PV Magazine

The cost of electricity is rising in states across the nation. That coupled with the increased frequency of long power outages is pushing more Americans to consider solar. Homeowners are challenged to stretch their budgets now with inflation, supply chain challenges, and rising interest rates. Rocket Solar’s study asked homeowners which home essentials they are spending more on today than a year ago, 61% said electric power—second only to food (85%) and ahead of commuting (39%). Continue reading here.

U.S. DEPARTMENT OF THE TREASURY NEWS RELEASE

READOUT: Stakeholder Roundtable on Clean Power Generation and the Inflation Reduction Act, October 26, 2022

WASHINGTON, D.C. – Today, U.S. Secretary of the Treasury Janet L. Yellen participated in a virtual roundtable with key stakeholders on clean power generation and the Inflation Reduction Act. The roundtable is part of a series of discussions the Treasury Department is hosting as it solicits input from the public to inform its work implementing the Inflation Reduction Act. Nearly three quarters of the Inflation Reduction Act’s $369 billion climate change investment – $270 billion – is delivered via tax incentives, putting Treasury at the forefront of this landmark law.

MORE NATIONAL NEWS & RESOURCES

GLOBAL NEWS

How utilities can ensure everyone benefits from electrification

Sponsored Content by Matt Ross, Senior Product Manager, GridX
Published by Utility Dive 

A trailblazing utility

At the recent E Source conference, I was able to hear from Sacramento Municipal Utility District (SMUD) on their efforts to assist LMI customers. SMUD is the 6th largest community owned utility in the United States serving 645,000 customers. It has a zero-carbon goal of 2030 with rates among the lowest in California and has been conscientious of financial burdens carried by their under-resourced customers. 

With its service territory in one of the nation’s priciest housing markets, with two-thirds of Americans living paycheck to paycheck and rising gas prices hitting communities of color and rural households in the US hardest, SMUD has segmented under-resourced customers to identify low/medium income customers, vulnerable commercial customers and develop targeted programs and initiatives. Read more here.

Photo Credit: National Renewable Energy Laboratory (NREL)

FARMERS HARVESTING SUNLIGHT

Boost Bottom Line Harvesting Sunshine: Farmers Adopt Solar to Reduce Energy Bills and Boost Bottom Line, by Dan Crummett, Progressive Farmer Contributor

COYLE, Okla. (DTN) — As public utilities and government policies push alternative energy to power the nation’s electrical grid, farmers in certain areas are finding harvesting sunlight can make as much economic sense as harvesting row crops. The key, however, lies in landowner access to “net metering” programs offered by utilities for consumers who install renewable energy systems to offset monthly electrical power purchases.

The Database of State Incentives for Renewables and Efficiency (DSIRE) www.dsireusa.org provides state-by-state data, including net metering system capacity limits, for example: 

  • Nebraska: 25kW 
  • Oklahoma: 300kW or less
  • Indiana: 1 MW
  • Iowa: 1 MW
  • Minnesota: 1 MW
  • Illinois: 5 MW

ENERGY STORAGE 

Why You Need Home Batteries — and It’s Not All About Blackouts, by Brian Cooley, CNET

A better priority is to spec your battery system for “rate arbitrage” to save money and be more green every day. The idea is simple: Store excess free energy from your rooftop in your batteries rather than selling it back to a utility that doesn’t like the idea and offers a pittance. Instead, use that stored energy later in the day during peak times to avoid the highest electricity rates while also doing your part to take strain off the grid. It’s the missing piece that makes residential rooftop solar a more comprehensive proposition.

CNET Video: How to Approach Home Batteries if the New 30% Tax Credit Has Your Attention

ADDITIONAL RECOMMENDED READING & RESOURCES

ØRSTED IN THE NEWS

  • Ørsted to sell 50% stake in US renewables portfolio, Power Engineering International
    The portfolio includes onshore wind farms Lincoln Land Wind, Plum Creek Wind, and Willow Creek Wind as well as the solar farm Muscle Shoals. The total capacity of the portfolio is 862MW. Proceeds from the $410 million asset sale will be used to fund future projects as Ørsted aims to reach 50GW of installed renewable energy capacity globally by 2030.
    About Plum Creek Wind:
    Plum Creek Wind is located in Wayne County, Nebraska. The project generates 230 megawatts of onshore wind power and includes long-term, green corporate power purchase agreements with the J.M. Smucker Company, Vail Resorts and Avery Dennison Corporation. It also provides over $3 million annually in landowner payments and property taxes for local communities. Plum Creek Wind began commercial operations in June 2020.
  • Gigaton PPA: Walmart, Ørsted and Schneider Electric Announce First Cohort for Renewable Energy Supply Chain Program, Corporate News Release
    “Ørsted welcomes the opportunity to work with Walmart suppliers participating in Project Gigaton and Schneider Electric on this unique initiative, which sets the standard for helping companies achieve a sustainable supply chain,” said Ben Pratt, vice president and head of markets and revenue at Ørsted. “This effort aligns with Ørsted’s own net-zero by 2040 supply chain initiative – we understand firsthand that in the realm of decarbonization there are no competitors, only partners. Orsted looks forward to seeing this type of collaborative agreement trend across the industry.”

U.S. MANUFACTURING

PV MAGAZINE POSTS

Homeowners Say It’s Too Expensive to Go Solar. Can You Lower the Costs?

By Kristina Zagame, EcoWatch

Key Findings

  • 79% of survey respondents have experienced financial stress due to their electricity bill
  • 42% of survey respondents have considered installing solar panels
  • 60% of survey respondents agree that solar panels are too expensive 
  • 41% of survey respondents have never heard of community solar
  • 33% of homeowners have heard of community solar, but don’t know what it is 

recent study from EcoWatch of 1,000 homeowners found that solar panels are becoming an increasingly popular energy alternative in the U.S., mostly due to homeowners looking for ways to lower their utility bills amid rising electricity rates.

The average cost of electricity rose from 13.2 cents per kilowatt-hour (kWh) in 2020 to roughly 14.8 cents in 2022. That might not sound like much, but that’s the difference between an average monthly utility bill rising from roughly $118 to $136 in just three years. And it’s only expected to keep rising in 2023. Continue reading here.

More by Kristina Zagame:

AVAILABLE INCENTIVES

Database of State Incentives for Renewables & Efficiency-Nebraska (53 programs)
Also, search your local utility’s website for any available incentives or rebates for renewables and energy efficiency.

  • Residential Renewable Energy Tax Credit
    Solar-electric property
    26% for systems placed in service after 12/31/2019 and before 01/01/202
    30% for systems placed in service after 12/31/2021 and before 01/01/2033
    Battery Storage Systems (Standalone Systems)
    0% for systems placed in service before 1/1/2023
    30% for systems placed in service after 12/31/2022 and before 01/01/2033
    The system must have a capacity of at least 3 kilowatt hours
    The home served by the system does not have to be the taxpayer’s principal residence.
  • Business Energy Investment Tax Credit (ITC)
    Scroll down to learn about the significant changes the Inflation Reduction Act made to this credit. Regarding credit monetization, the Inflation Reduction Act includes certain provisions for public utilities, electric cooperatives, and other non-taxable entities:
    The direct pay option allows non-taxable entities to directly monetize certain tax credits. The provisions apply to nonprofits, a state or political subdivision thereof, the Tennessee Valley Authority, Indian tribal governments, any Alaska Native Corporation, or any corporation operating on a cooperative basis which is engaged in furnishing electric energy to persons in rural areas. Such applicable entities can elect to be treated as having made a tax payment equal to the value of the tax credit they would otherwise be eligible to claim. The entity can then claim a refund for the excess taxes they are deemed to have paid. The option effectively makes this tax credit refundable for these entities. The act also allows eligible taxpayers to transfer all or a portion of their eligible tax credits to an unrelated taxpayer. Transfers must be reported to IRS and only one transfer is permitted. Must be elected no later than the due date for tax filing for the tax year the tax credit is claimed.
  • Depreciation: Modified Accelerated Cost-Recovery System (MACRS)

RELATED READING & RESOURCES

FROM THE ROCKY MOUNTAIN INSTITUTE

The Time is Ripe for Communities to Embrace Clean Energy on Brownfields

New federal incentives can help communities repurpose brownfields into brightfields, high-value sites that support a more equitable, clean energy economy. To speed this transition across America, RMI is co-launching the first ever Brightfields Accelerator.

Did you know that for the first time ever, the Inflation Reduction Act enables tax-exempt entities to claim direct payment instead of tax credits for qualifying projects? This opens the door for projects to be owned by tax-exempt entities (i.e., municipalities, states, Tribes, publicly-owned utilities, religious institutions, and other non-profits). Before this, these entities were ineligible to directly capture the benefits of federal tax credits because they did not pay federal taxes. 

Photo: This 4 MW solar project is in Cuyahoga County, Ohio and supplies enough electricity to power 500 homes. Credit: Jackie Lombardi

GENERAC POWER SYSTEMS NEWS

Generac Power Systems and EODev Announce Agreement Bringing Large-Scale, Zero-Emissions Hydrogen Fuel Cell Power Generators to North America

WAUKESHA, Wis., Oct. 3, 2022 /PRNewswire/ — Generac Power Systems, a leading global designer and manufacturer of energy technology solutions and other power products, and EODev, a French developer and manufacturer of zero-emission hydrogen fuel cell power generators, today announced a formal distribution agreement. Generac will offer EODev’s GEH2® – a large-scale, zero-emissions hydrogen fuel cell power generator – to the North American market.

The distribution agreement signifies the continued growth and availability of alternative energy solutions for the industrial power sector, which addresses a pioneering market in the transition to low-carbon and emission-free power solutions. This collaboration emphasizes Generac’s Powering A Smarter World strategic focus and equally expands EODev’s presence in the North American market with its cutting-edge, one-of-a-kind hydrogen fuel cell power generators.

Generac Introduces Portable Power Stations

Generac enters the portable battery market with all-new GB1000 and GB2000 Portable Power Stations, unlocking battery power virtually anytime, anyplace

WAUKESHA, Wis., Sept. 26, 2022 /PRNewswire/ — Generac Power Systems, Inc, a leading global designer and manufacturer of energy technology solutions and other power products, today announced the introduction of its new Generac Portable Power Station products and the Company’s entrance into the portable battery market. Joining its renowned line of backup and portable power products, the Generac GB1000 and GB2000 Portable Power Stations provide the advantages of clean, emission-free AC or DC power output at the push of a button.

CLEAN ENERGY GROUP RESOURCE

Hydrogen Fuel Cells: Answers to Four Common Questions

Hydrogen, and particularly green hydrogen, has been hyped as a zero-carbon, emissions free fuel. However, the only emissions-free use of green hydrogen is when it’s run through a fuel cell.

Clean Energy Group has published a fact sheet answering four commonly asked questions about fuel cells – what they are, what they can be used for, drawbacks, and potential benefits. This fact sheet will provide context for any community organizations, municipalities, or critical service providers who are considering fuel cells as a carbon-free power source.

For more information about hydrogen use in the power sector, click here.

Opinion: Inflation Reduction Act is giving investors the confidence to bet on the clean energy transition

By Justin Gerdes, Managing Editor, Energy Monitor

Even for the world’s largest economy, $369bn is a lot of money. That figure, the carve out for clean energy transition and climate spending in the Inflation Reduction Act (IRA), is four times larger than the US’s previous largest investment in climate action.

Even more important than the size of that dollar figure is what the law does for investor confidence. Before the IRA, US federal clean energy policymaking was known more for its variability than its largesse – clean energy deployment spikes and slumps tracked the life of federal tax credits, which were often allowed to expire or extended at the last minute for a few years at a time. Continue reading here.

Also published by Energy Monitor 

What if the Biden administration financed the replacement of every coal plant in the US?

It is 2022 and there are still 172 coal plants representing 226GW of operating capacity in the US. According to the latest climate science, every single one must be offline by 2030, but while the country has retired 358 plants already, there are still far too many planning to run decades beyond what the science says is acceptable – and time is running out.

Now, thanks to the Inflation Reduction Act (IRA), the Biden administration has more than $250bn in loan guarantee authority dedicated to retiring and replacing fossil fuel assets sitting at the US Department of Energy (DOE) alone. There is even more potentially available thanks to a possible $360bn from a new national green bank or the $9.7bn the act provides the US Department of Agriculture (USDA) to support rural cooperatives to purchase clean energy. Compare that with the mere $150bn the US coal fleet is actually worth and suddenly it looks like getting coal offline by 2030 is a real possibility. So what would it look like if the administration actually did it?

About the writer: Justin Guay is the director for global climate strategy at the Sunrise Project. He has a decade of experience in non-profit advocacy and foundation strategy development. Prior to joining Sunrise he managed grant-making and strategy development for global coal campaigns at the ClimateWorks Foundation and Packard Foundation.

Also Of Potential Interest

Green Hydrogen News

Large-Scale Solar Siting: Encouraging Ecosystem Enhancement and Conservation While Producing Much Needed Zero-Carbon Electricity

Solar Energy Industries Association News Release

This new Solar and Storage Industries Institute policy brief proposes a siting framework for large-scale solar projects which will produce much needed zero-carbon electricity and can serve important ecosystem enhancement and conservation roles. This paper argues that large-scale solar projects should be designed and operated to maximize preservation of our natural capital and ecosystems and sited to minimize negative impacts on land. Read more here.

Download the paper: Large-Scale Solar Siting: Encouraging Ecosystem Enhancement and Conservation While Producing Much Needed Zero-Carbon Electricity

More about the Solar and Storage Industries Institute: Solar Industry Launches Nonprofit to Alleviate Clean Energy Roadblocks

Additional Recommended Reading 

Solar Industry Highlights the Work that Lies Ahead After String of Policy Success
The U.S. solar market is expected to produce over $600 billion in economic activity in the next decade, three-times more than it would have without the IRA. Over this period, emissions offsets from solar will increase from 139 million metric tons (MMT) annually to 492 MMT annually. There is strong public support for clean energy. Solar is the most popular power source and 75% of respondents say they would welcome a solar farm in their communities, according to the message testing survey.

Photo Credit: Associated Press/Heather Ainsworth

Amid a massive American clean energy shift, grid operators play catch-up

Creative Commons article by Robert Zullo
Republished by The Nebraska Examiner

For the better part of the past century, the American electric power system evolved around large, mostly fossil fuel power plants delivering electricity to residences, businesses and industry through a network of transmission and distribution wires that collectively came to be called the electric grid.

But as the threat of climate change driven by carbon pollution becomes more dire and as technological advances make wind, solar and battery storage ever cheaper options for powering homes and business, states, corporations and voters are increasingly pushing to aggressively decarbonize the grid. Continue reading here.

Robert Zullo is a national energy reporter based in southern Illinois, focusing on renewable power and the electric grid. Robert joined States Newsroom in 2018 as the founding editor of the Virginia Mercury. Before that, he spent 13 years as a reporter and editor at newspapers in Virginia, New Jersey, Pennsylvania and Louisiana. He has a bachelor’s degree from the College of William and Mary in Williamsburg, Va. He grew up in Miami, Fla., and central New Jersey.

Image: A map of grid operators’ territories. Source: Federal Energy Regulatory Commission