Act Now to Extend the ITC!

by | Aug 18, 2022 | 0 comments

Last week Sens. Manchin and Schumer struck a deal to pass a reconciliation bill that includes an extended and enhanced ITC.
We need your help to let Congress know you need them to pass the bill ASAP
What’s in the Inflation Reduction Act for Solar? So MUCH!
The new reconciliation bill, called the Inflation Reduction Act, includes an extended and improved ITC, and much more! Here’s what’s in the bill:
For Residential and Commercial Solar (under 1 MW):
  • 30% ITC until 2032, then ramping down to 28% in 2033 and 26% in 2034.
  • Storage, including stand alone storage, is included.
  • Limited direct pay – homeowners cannot receive a direct payment or have the credit be refundable. However, State or Local governments, tribes and non-profits can receive a direct pay ITC.
  • Transferability – ITCs can be transferred to corporations, but not individuals.
For Utility Scale Solar (over 1 MW)
  • 30% ITC upon the bill being signed into law, until 60 days after the Treasury Department issues new guidance.
  • Then the base ITC will be 6% with the following adders:
  • 24% for complying with new labor standards (prevailing wage and the state apprenticeship standards)
  • 10% for meeting domestic content standards
  • 10% for located a project in certain communities in which plants have closed
  • 10% for multi-family housing projects (application required)
  • Storage, including stand alone storage, is included.
  • Limited direct pay – individuals cannot receive a direct payment or have the credit be refundable. However, State or Local governments, tribes and non-profits can receive a direct pay ITC. Hydrogen projects can receive direct pay.
  • Transferability – ITCs can be transferred to corporations, but not individuals.
  • PTC – projects can choose the PTC or the ITC.
  • PTC is at 100% upon the bill being signed into law, until 60 days after the Treasury Department issues new guidance.
  • Then the PTC is 20% plus an additional 80% if labor standards are met
  • Projects between 1-5 MW (including community solar) can receive an ITC for interconnection costs.
  • Prevailing wage requirements are in effect for alteration or repair throughout the ITC recapture time, or ten years for the PTC.
Manufacturing
  • 30% manufacturing credit.
  • Above domestic content ITC adders to create demand.
  • SEIA modeling shows that this should result in ten times the domestic manufacturing in five years.
Other new programs
  • $3B Environmental and Climate Justice Block grants, through EPA
  • $250B DOE loan program (for projects not receiving other federal funds)
  • $2B in Transmission loans
  • $750M in Transmission grants
  • $1B for REAP
  • $1B for agricultural energy projects, now including storage
  • $9.6 B for co-ops to switch to renewables
One downside
Right-of-ways for solar on federal land are restricted for the next ten years.
SEIA will be holding more webinars and will be updating their tax guidance.
New Interactive Tool & Report Connects Oregon Renewable Energy Potential with Development Considerations
A public partnership with the Oregon Department of Energy, Oregon Department of Land Conservation & Development, Oregon State University’s Institute for Natural Resources, and the U.S. Department of Defense has published new educational materials that will help local governments, Tribes, communities, policymakers, agencies, energy developers, and other stakeholders access important information and considerations for potential renewable energy in Oregon.
Housed on Oregon Explorer, the new interactive online reporting and mapping tool combines data on renewable energy, military training areas, economic development, land use, natural resources, community characteristics, and other important considerations.
Users can explore hundreds of data layers, generate a site-specific report, and learn about the renewable energy considerations for potential projects both onshore and offshore. While the ORESA project will not supplant the permitting information required in regulatory processes or decisions, the project resources will provide information to ongoing siting and permitting processes and future policy conversations for renewable energy. Access to quality data early in the process is critically important for ensuring that renewable energy is developed responsibly, balances state and local concerns, is administratively efficient, considers cumulative impacts, and includes appropriate engagement with affected communities.
In addition to the interactive mapping and reporting tool, the project reportsummarizes key findings, data, stakeholder perspectives, and analysis on renewable energy across the state. Read more on ODOE’s blog.
White House Announces Solar Initiatives to Reduce Electricity Bills, Create Clean Energy Jobs
PV Magazine — The Department of Energy (DOE) announced new initiatives to lower electricity bills for low-income residents and create good-paying jobs in the domestic solar industry. DOE also announced $10 million from President Biden’s Bipartisan Infrastructure Law to jump-start solar energy careers in underserved communities, which also supports the President’s goal of reaching a carbon-free electricity sector by 2035.
“The Solar Energy Industries Association (SEIA) has recommended that both the US Department of Energy (DOE) and state governments relax LMI eligibility requirements and streamline the community solar subscription process for LMI customers,” said Sean Gallaher, vice president of state and regulatory affairs at SEIA.
OSSIA Participates in Girls Build Summer Camps
OSSIA staff and volunteers participated in the Girls Build summer camps in July. Thanks to super volunteer Laura Nicholson, the campers build solar powered spray misters, to keep themselves cool during camp. The girls learned about solar, assembled circuits, stripped wires, and had many water fights with their sprayers!
Thank you OSSIA volunteers who made this fun camp happen.
Call for SPONSORS AND PROPOSALS
Oregon Solar + Storage Conference in November 2022
Can you believe it’s already time to start talking about the conference? We are so excited to be together again at the 2022 Oregon Solar+Storage Conference. Please reach out to Mauri at mauri@oseia.org or 903.279.6516 if you have questions or want to talk more about the conference.
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