This is a B...F...D... (US Inflation Reduction Act)

President Biden signed the #InflationReductionAct (IRA), this was a huge moment for the US, the energy tech industry, #BatteryStorage and the #GlobalEnvironmentalMovement. Obama said it best ‘This is a BFD’.

At Moixa we have been following the political ping pong over major climate action in the US since Biden took office in January 2021. We thought hope was lost for major policy to accelerate the US’s decarbonisation agenda. However… kudos to the Senate and the House!

So what is the IRA? Well it’s 730 pages of chewy legalese, but with the help of our team at Moixa (namely our resident product lead/policy junkie, Sam Wevers ) we have summarised the key points with a focus on the impact to the residential energy storage sector:?

• $369 billion invested over 10 years?
• Estimated 40% emissions reduction by 2030
• 550GW of clean generation over the next 10 years
• Extension of the Investment Tax Credit (ITC) for clean energy investments and production?
• Resi scale battery storage has its own standalone ITC, enabling charging from grid and opening up cost effective battery retrofits!?
• Credit top ups can range between 30-70%, these are heavily linked to social equity, for example:?
• + 10% when wage and apprenticeship requirements are met?
• +10% when facilities or construction in old fossil fuel, low income or Native American communities
• A focus on US manufacturing and supply chains, supporting industry and creating new green jobs?

For residential battery storage this is huge. We expect there to be a reduction in costs for battery manufacturers based in the US, much greater value for behind the meter optimization of storage assets, and significantly increased demand from consumers.

Our #Gridshare platform is well placed to support energy actors to take advantage of this changing landscape. Whether thats major solar installers, energy retailers or utilities we can maximise the value of these assets to end customers through BTM optimisation and enable grid services participation with our VPP capabilities. If you want to learn more about Moixa or our work in the US, please do get in touch with me directly.?

We are excited by the huge impact this bill will have on climate and the opportunities it will create for communities and those businesses at the forefront of the energy transition.?

Do you agree with Biden? ‘This bill is the biggest step forward on climate….ever!’