Inflation Reduction Act provides significant support for U.S. solar industry
TORONTO and Knoxville, Tenn., Aug. 08, 2022 (GLOBE NEWSWIRE) -- Solar Alliance Energy Inc. (‘Solar Alliance’ or the ‘Company’) (TSX-V: SOLR, OTCQB: SAENF) is pleased to provide an update on the Inflation Reduction Act, which was passed by the U.S. Senate yesterday after a weekend of debate. The climate initiative includes long-term solar and storage tax incentives, investments in domestic solar manufacturing and other critical provisions that will help decarbonize the electric grid with significant clean energy deployment.
“The U.S. Senate has passed a transformative piece of legislation that will provide climate benefits for generations,” said CEO Myke Clark. “The legislation includes several initiatives that will provide long term stability and incentives to the U.S. solar industry. This includes an increase to, and extension of, the investment tax credit for solar and a more flexible structure for companies like Solar Alliance to monetize that tax credit. These two key proposals have the potential to accelerate Solar Alliance’s growth, support our ability to own and operate solar projects and contribute to the strengthening of the economy through clean energy project deployment.”
The current Investment Tax Credit (“ITC”) is a 26 percent tax credit for solar systems. The proposed legislation increases that tax credit to 30 percent for projects completed in 2022 and extends the ITC another ten years, providing a strong long-term signal to the solar industry. According to the Solar Energy Industries Association, the solar ITC has helped the U.S. solar industry grow by more than 10,000% percent since it was implemented in 2006, with an average annual growth of 50% over the last decade alone. Under the proposed legislation, starting in 2023 companies would be allowed to sell most energy-related tax credits to other companies without having to resort to complicated tax equity structures. For the type of projects Solar Alliance is developing this provision could reduce transaction costs and make the process of monetizing tax credits much more streamlined.
The Senate vote means the legislation now moves to the House of Representatives for approval before being put in front of President Biden for his signature.
“This climate initiative is aimed at reducing greenhouse gas emissions by 40 percent below 2005 levels by 2030 through a series of initiatives that would directly benefit solar consumers. This legislation aligns perfectly with our growth strategy and will help support jobs and clean energy deployment in the U.S.,” concluded Clark.
Myke Clark, CEO
About Solar Alliance Energy Inc. (www.solaralliance.com)
Solar Alliance is an energy solutions provider focused on commercial and industrial solar installations. The Company operates in Tennessee, Kentucky, North/South Carolina and Illinois and has an expanding pipeline of solar projects in the United States. Since it was founded in 2003, the Company has developed $1 billion of renewable energy projects that provide enough electricity to power 150,000 homes. Our passion is improving life through ingenuity, simplicity and freedom of choice. Solar Alliance reduces or eliminates customers' vulnerability to rising energy costs, offers an environmentally friendly source of electricity generation, and provides affordable, turnkey clean energy solutions.
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