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Solar developers have been intrigued by the possibilities of the Inflation Reduction Act (IRA) of 2022 since President Joe Biden signed it into law in August. With nearly $370 billion in incentives for clean energy and climate-related programs, it's one of the most significant advances for climate change mitigation and adaptation.
In today's replay from the RE+ PowerUp Media Zone, a live production of SunCast Media, Bruce Stewart leads this discussion on what every community solar developer needs to know about the Inflation Reduction Act (IRA) of 2022. Bruce is president and CEO of Perch Energy, a clean energy tech services platform and provider of community solar services.
He speaks with three solar notables to gain their insights on the IRA from accounting, banking and legal perspectives.
Tony Grappone is a partner in the Andover, Massachusetts, office of Novogradac. He provides accounting, tax and consulting services to developers, syndicators and investors of developments that qualify for federal and state tax incentives. "We help folks structure deals to raise the money so they can build and operate community solar projects like the ones Perch works on," he said.
Adam Altenhofen is a senior vice president of U.S. Bank's Environmental Finance Group, where he leads the development of new products, structures, and services. "We see community solar as a great catalyst to expanded access to solar and enabling low-income communities to participate in this energy transition," he said.
Bryan Didier is a partner at Leverage Law Group in Leawood, Kansas, where his specialties include Renewable Energy Tax Credits. The firm has been doing renewable deals since its founding in 2009, with many in the community solar space. "It's exciting to see what the IRA has to offer these types of developments. We're looking forward from a policy perspective and how that will impact access to solar across the board," he said.
Tony said the federal government has long used tax credits to stimulate private sector investment into socially minded causes, like renewable energy, to drive job creation into low-income communities and provide affordable housing. Until 2006, there was little solar investment in the United States.
"But at the end of 2005, the federal government created the 30% solar investment tax credit (ITC), which launched this industry. It's been a critical financing element for renewable energy and has helped bring the industry to what we see today," Tony said.
The wind industry, in contrast, was given a Production Tax Credit (PTC). The PTC generates a credit for each kilowatt-hour produced for the first ten years of a project's lifetime, while the total value of the ITC is upfront.
Adam noted that the IRA will allow solar developers to choose between the ITC and the PTC starting in 2023.
"The smaller end of the market now has alternatives when it maybe didn't have any before," Bryan added.
Join us to learn more about the IRA — a game-changing law with broad potential impacts and corresponding complexities. Our panelists will help you sort out all you need to know.
RESOURCES:
Connect with Bruce Stewart on LinkedIn
Connect with Tony Grappone on LinkedIn
Connect with Adam Altenhofen on LinkedIn
Connect with Bryan Didier on LinkedIn
Follow Perch Energy on LinkedIn and check out its website
Follow Novogradac on LinkedIn and check out its website
Follow U.S. Bank on LinkedIn and check out its website
Check out Leverage Law Group’s website
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ABOUT THE HOST OF SUNCAST:
Nico Johnson is the creator and host of SunCast, consistently rated a top solar podcast in the clean energy sector. The content of the show is geared towards listeners looking for insights on where the markets are headed, how to position themselves or their companies, and what today's market leaders do to stay ahead of the pack.
Nico is an Investor, Executive Coach, and 16-year veteran of the solar industry, having led development in the US and Latin America for global companies like Trina Solar and Conergy.
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