U.S. Inflation Reduction Act: Impacts on Renewable Energy

In a recent impact analysis of the Inflation Reduction Act (IRA), UL Solutions cited renewables industry trade group American Clean Power’s statistic that, with the passing of the IRA, roughly 40% of the country’s electricity will come from wind, solar and energy storage by 2030.

Additionally, American Clean Power reports the Inflation Reduction Act will create:
• 550,000 clean energy jobs.
• 525-550 GW of new clean power – enough electricity to power the equivalent of 110 million homes, nearly every home in America.
• $600 billion (USD) in capital investment.

Overall, the demand for energy storage installations and hybrid systems stands to explode.

“We expect the IRA to both significantly accelerate and increase the deployment of new renewable energy projects in the U.S. over the next decade,” Gillian Howard, global director of sustainable energy and infrastructure at UL Solutions, said. “This will be transformational.”

Standalone storage now eligible for tax credits: a long-awaited change and major IRA impact

“Providing an investment tax credit for standalone storage is the single-most important policy change in the IRA — period,” said David Mintzer, energy storage director at UL Solutions. “This one change sets up all of the other energy storage advantages gained from the new law. Those of us in the BESS industry have been waiting for this to happen for more than 10 years, and this is the most significant legislation to accelerate the transition to clean energy and smart grids.”

Tools to support renewable energy development and storage in the IRA era

Launching new projects requires robust tools and technologies to manage the technical, operational and financial components. UL Solutions has assessed more than 300 GW worth of renewable energy projects, augmenting project developers’ technology and advisory needs with services, including:
• Full energy and asset advisory services.
• Due diligence support.
• Testing and certification.
• Software applications for solar, wind, offshore wind and energy storage projects, such as HOMER® Front for technical and economic analysis of utility-scale standalone energy storage and hybrid energy systems, HOMER Grid for grid-connected energy systems, and HOMER Pro for optimizing microgrid design in remote, standalone applications.

UL Solutions stands with renewable energy companies to act on this opportunity to increase the deployment of energy storage and renewable energy.

Read the full article at: https://www.ul.com/news/us-inflation-reduction-act-impacts-renewable-energy

HOMER software delivers industry-leading system simulations, optimization, sensitivity analysis and best-in-class storage models across three categories of hybrid systems: islanded microgrids, grid-connected distributed generation, and front-of-the-meter utility-scale storage and hybrid systems.

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Visit UL Solutions HOMER® software to learn more about HOMER Pro, HOMER Grid and HOMER Front modeling and optimization software, download complimentary trials, sign up for training and explore our extensive knowledge base and other support documents.

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