The inflation Reduction Act (IRA) is the largest climate and energy spending package in American history. The massive energy, climate, and tax package allots $370 billion to promote renewable energy and climate resilience.
IRA Main Objectives
The Investment Tax Credit extends for another ten years at a 30% rate for residential and commercial projects. For solar plants larger than 1 MW, the tax credit is at 6%. In addition to that, the main aim of the IRA is to combat inflation, lower energy costs, and advance climate goals. It will improve access and equity for those who need it most. Also, it will stimulate U.S. manufacturing to create millions of good-paying jobs.”
Future of Renewable Energy Industry
Researchers from Princeton University, Dartmouth College, Evolved Renewable Energy Research, and Climate Impact Consulting calculated that the IRA could increase solar deployment from the current rate of 10 GW of capacity added annually by 2024 to nearly five times that amount, adding 49 GW of utility-scale solar annually.
The present prediction of $177 billion for solar investment could nearly double to $321 billion by 2030. According to the analysis, over the following ten years, the Act will lead to a total capital investment of close to $3.5 trillion in new American energy sources. The act anticipates a reduction in yearly energy spending in the US of at least 4% by 2030, saving consumers, businesses, and manufacturers more than $50 billion annually.