July 14, 2020
H.R. 2, known as the ‘Moving Forward Act’, is a huge $1.5 trillion dollar infrastructure package intended to assist in the rebuilding of American infrastructure in the wake of COVID-19. The bill is important for the solar industry as it places a lot of emphasis on solar and energy storage and the role that renewable energy can play in this rebuilding process.
The bill includes $300 billion for the construction, maintenance, and repair of roads and bridges, but also has a heavy focus on green energy. The bill includes provisions for the reduction of carbon emissions, which will, of course, require the implementation of renewable energy systems like solar and storage.
Below are some of the key aspects of the bill which concern the solar and energy storage sectors. This information is courtesy of the Solar Energy Industries Association (SEIA) and Solar Power World. The solar and energy storage provisions included in the package include:
A five-year extension of the Solar Investment Tax Credit (ITC) through 2025, at a rate of 30%
A two-year phase down of the Solar ITC at rates of:
26% for 2026
22% for 2027
Direct Pay Proposals at a rate of 85% for section 48 qualifying projects while the PTC/ITC credits still exist
A Storage ITC
Incentivization of clean energy investment in low income and underserved communities
Tax credits for clean energy manufacturing
Provisions for grid modernization
Transmission planning funds, with a requirement to account for renewables
A grant program for solar installations in low income and underserved communities
Funds for renewable energy projects at community institutions such as educational facilities
Improvements to public land renewable energy development programs
It’s clear that both solar energy and energy storage can play a vital role in rebuilding infrastructure and boosting the U.S. economy following the turmoil of COVID-19. The successful passage of the ‘Moving Forward Act’ could play a significant role in the growth of solar and storage in the near future.
To go solar and develop your own renewable energy project, get in touch with YSG Solar today. Send us an email, or call at 212.389.9215 to learn more about the energy market and how you could save with solar.
YSG Solar is a project development vehicle responsible for commoditizing energy infrastructure projects. We work with long-term owners and operators to provide clean energy assets with stable, predictable cash flows. YSG's market focus is distributed generation and utility-scale projects located within North America.
Sources:
https://www.seia.org/news/house-passes-infrastructure-package-key-clean-energy-provisions