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Here’s how the big US climate bill could turbocharge solar and wind

Here's how the big US climate bill could turbocharge solar and wind

The Inflation Reduction Act (IRA), a now fully supported Democratic bill that addresses climate change and includes wind and solar spending, is expected to be introduced in the US Senate tomorrow. Here’s what its potential impact is, should it become law.

Princeton University released a Rapid Energy Policy Evaluation and Analysis Toolkit (REPEAT) yesterday in partnership with Dartmouth College, Evolved Energy Research and Carbon Impact Consulting, outlining the effects the IRA could have.

The law would nearly double investment in wind energy and solar PV to $321 billion by 2030, up from $177 billion under current policies.

Furthermore, according to REPEAT, it could fuel record growth in U.S. wind and solar, with annual additions increasing from 15 gigawatts (GW) of wind and 10 GW of utility-scale solar PV in 2020 to an average of 39 GW per year. year of wind additions in 2025-26 – more than twice the rate of 2020 – and 49 GW per year of solar energy – more than five times the rate of 2020 – after which solar growth rates increase.

Furthermore, REPEAT reports that the IRA would cut annual U.S. energy spending by at least 4% by 2030, saving nearly $50 billion dollars a year for households, businesses and industry. That translates into hundreds of dollars in annual energy cost savings for U.S. households.

Tax credits, rebates and federal investments in the IRA would shift costs from utility bills to the progressive federal tax base. For example, it offers a long-term extension of the US tax credit for investment in solar energy of 30% and $30 billion in manufacturing tax credits for clean energy production and battery storage.

As for the impact on fossil fuels, the report notes:

These savings do not include the additional downward pressure that the law will put on oil and natural gas prices by encouraging lower consumption of these commodities, further reducing US energy costs.

Read more: Why is solar energy in the US community predicted to more than double by 2027?

Photo by Kindel Media at Pexels.com


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