Secret Plan To Fight Inflation. It has long been known that every White House has a secret plan to fight inflation. Last night, as most of you are now aware, The Senate came to an agreement with Senator Manchin, with Sinema expected to be on board, on the Inflation Reduction Act of 2022. This $360billion bill is expected to pass through reconciliation on a party line vote. It represents the boldest move to fund the energy transition and to fight climate change, bill language is still in draft but currently includes a 10-year ITC extension with 30% (6% plus adders) and a standalone credit for energy storage. There are many more aspects to this bill that will be recapped by media shortly. Here is the one-pager and here is the full text. More to come throughout the day.
What It Means. The solar market already knows how to work around tax equity and will continue to do so, a ten year extension for your partnership with your tax lawyers and appraisers. Energy storage comes from a different capital background, merchant and equity, and will have to get up to speed on using the tax credit. It means that long term bankability, capability and experience of the platform you build your storage projects on will become front and center, software integration becomes crucial consideration for asset owners.
- New York Times: Manchin, in Reversal, Agrees to Quick Action on Climate and Tax Plan
- Axios: Washington waits for Sinema’s verdict
- Politico: Biden launches plan to bring solar to low-income homes
- Reuters: Neoen Australia battery to provide grid stabilisation service in world first
- Solar Power World: BayWa r.e. distributing PVpallet’s reusable solar panel shippers
- Energy Storage News: US installs 5GWh of battery storage in H1 2022 but overall clean power deployments fall
- Bloomberg: Enphase Surges Most Since October as Europe Sales Climb 69%
Opinion
Best, Yann