Support for clean energy generation in the Cut Inflation Act – pv magazine USA
Late last year, President Biden signed an executive order to boost America’s clean energy economy, which included a goal of achieving 100% carbon pollution-free electricity by 2030. , the acquisition of 100% zero-emission vehicles by 2035, and more. Achieving these goals would require a prolonged reliance on China, which is responsible for much of the solar and renewable energy supply chain. Only two of the downsides of import dependence include the fact that China’s manufacturing sector employs cheap or forced labor, and that its manufacturing facilities are powered by electricity generated from coal-fired power plants.
The Cut Inflation Act of 2022 contains $370 billion in spending for renewable energy and climate action. The bill includes more than $60 billion for domestic manufacturing through the clean energy supply chain, which includes clean energy vehicles. This historic level of investment is critical to achieving American manufacturing independence and clean energy security.
What’s in the US industry bill?
- An investment of $30 billion in production tax credits to accelerate domestic manufacturing of solar panels, wind turbines, batteries and critical mineral processing.
- A $10 billion investment tax credit to build clean technology manufacturing facilities, including those that make electric vehicles, wind turbines and solar panels
- $500 million in Defense Production Act for heat pumps and critical mineral processing
- $2 billion in grants to retool existing auto manufacturing facilities to make clean vehicles
- Up to $20 billion in loans to build new clean vehicle manufacturing plants in the United States
- $2 billion for National Labs to accelerate cutting-edge energy research
Tax credits across the entire solar supply chain have been included:
- Manufacturing credit: 100% credit until 2029, 75% in 2030, 50% in 2031, 25% in 2032.
- Thin film photovoltaic cell and crystalline photovoltaic cell: 0.04 USD per cell capacity in Wdc.
- Photovoltaic plate: $12/m². metre.
- Solar-grade polysilicon: $3/kg.
- Polymer backing sheet: $0.04/m². metre.
- Solar module: $0.07 per module capacity in Wdc.
- Torsion tube: $0.87/kg.
- Structural tie: $2.28/kg.
- Central inverter: $0.25 per Wac capacity.
- Commercial UPS: $0.015 per Wac capacity.
- Residential UPS: $0.06 per Wac capacity.
- Microinverter: $0.11 per capacity on Wac.
- Battery module: $10 per kWh of battery module capacity.
- Critical Mineral: 10% of costs incurred.
- Battery Cell: $35 per kWh of battery cell capacity.
“With long-term incentives for clean energy deployment and manufacturing, the solar and storage industry is poised to create hundreds of thousands of new jobs and get to work building the next era of energy leadership. American. This is a crucial window of opportunity that we cannot miss, and now Congress must seal the deal and pass this legislation,” said Abigail Ross Hopper, president of the Solar Energy Industries Association.
The bill is expected to go to the Senate for a vote as early as next week.
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