The “Build Back Better” Infrastructure bill has yet to pass the Senate, but would mean more funds and incentives for the renewable energy industry, and specifically Solar. So what is the bill, why is it so important to Renewables that it get passed, and what would it mean for the Solar Industry?
- Why Is This Bill Important For Renewables
The “Build Back Better Act” is a bill that targets social spending and climate issues. The bill would be a game-changer for the renewable energy industry as it would, among other things, increase clean energy upgrades, increase subsidies for green tech, including tax credits for EVs, solar, and wind, plus making it easier to make your home more energy-efficient. The bill would help solar specifically because it would increase subsidies for solar installations and support for companies looking to begin manufacturing solar equipment in the United States.
- The Nitty Gritty
The bill plans to set aside $555 billion for clean energy and climate investments. According to Gregory Wetstone, CEO of the American Council on Renewable Energy, this piece of legislation is a ‘critical milestone” in the stability of clean energy. The bill outlines a ten-year extension of the ITC (solar investment tax credit), and around $110 billion dollars will be put towards incentives to stimulate domestic supply chains and technologies like solar and batteries. In addition, taxpayers can be eligible for direct payments rather than tax equity offsets as the direct pay 25D tax credit, and domestically-produced EV (electric vehicle) prices are set to drop by $12,500 as a result of the new bill.
- The Stakes Are High
The bill has been passed by the House of Representatives but it has yet to pass the Senate. With some senators intent on killing this legislation, the stakes for the advancement of commercial and residential Solar, and lowering emissions to tackle climate change have never been higher. Though Solar is growing rapidly in the U.S. due to falling costs, it’s not growing fast enough to combat much of the inaction in lowering carbon emissions. This bill is crucial for the environment and for our future on this planet.
- Final Thoughts
We hope this introduction to the “Build Back Better” bill will encourage some research of your own, and some shares to friends in the process. For the Solar industry to continue to expand, this legislation needs to pass the Senate. For more information on other issues like the supply chain and interviewing processes, check out our other blog posts or video blogs. For specific information regarding Renewables or recruiting please reach out to [email protected].