Tax Equity Rules. Based on some bad ideas, the Basel 3 rules are considering tighter balance sheet requirements for banks that participate in tax equity. Doing so would obviously put tax equity in a less preferential spot even though the risk to the balance sheet has always been minimal. Advocates continue to lobby hard to make sure these draft rules are changed for the market’s sake.
Political Risk? Hundreds of billions have been invested thanks to the IRA and some are starting to be concerned if the IRA could be a political football if the party in power changes in November. Here’s my thoughts…First 2016 had similar thoughts and ultimately (with a lot of noise) solar continued to grow between 16 and 20. Both parties have been hard on solar with tariffs for well over a decade. A republican President brought the ITC to 30% originally and I can give you examples where a republican governor vetoed an anti-solar net metering bill and where a democrat governor let anti-solar net metering rules be implemented. While there is noise in the system to extend the tax policies currently in place that will sunset next few years, which will need pay-fors, many of the popular IRA policies are likely very safe. And at the end of the day, the grid needs energy and power to continue this extensive economic and manufacturing growth we’ve seen over the past few years.
- Bloomberg: Wall Street Has a Dire Warning About Green Investments Under New ‘Endgame’ Rule
- Utility Dive: NextEra CEO downplays chance of Inflation Reduction Act repeal if Trump re-elected
- Wall Street Journal: Bipartisan Backing to Explore Fast Tracking Solar and Wind on Oil-And-Gas Lands
- New York Times: Democrats Say Biden Hasn’t ‘Made the Case’ on Climate Despite Achievements
- Axios: Biden eyes “pause” of new LNG export facilities
- Reuters: China’s installed solar power capacity rises 55.2% in 2023
- Renewable Energy World: ‘We’re playing catch up’ – How grid operators see the future of battery storage
- Solar Power World: ADT Solar to close remaining branches, exit residential solar business
- Energy Storage News: Regulator quashes ERCOT’s proposed state-of-charge rules for BESS
- Canary Media: Big electric-truck charging depots are coming soon to California
- PV-Magazine: Nebraska introduces legislation to prevent HOA from barring solar installation
Opinion
Best, Yann