Biden Signs the Largest Climate and Energy Package in US History

US President Joe Biden signed the Inflation Reduction Act of 2022 (IRA), which is the largest climate and energy tax bill in US history. The massive energy, climate, and tax bill includes $600 billion in spending, $370 billion of which is dedicated to supporting renewable energy and climate resilience.

The bill requires a nationwide reduction of carbon emissions by roughly 40% in 2030, which aims to save energy for the Americans. The Biden administration said 7.5 million more households will be able to install solar energy on their roofs with a 30% tax credit. It also stated families that take advantage of clean energy, efficiency, and electric vehicle tax credits will save more than $1000 a year. IRA will play an important role of promoting the development of PV market in the US.

According to the data of the Energy Information Administration (EIA), the US newly added 15GW of power generation capacity in the first half of 2022. The top three were wind energy (5.2GW), natural gas (4.3GW) and solar energy (4.2GW), followed by energy storage. Solar energy is expected to reach 17.8GW?of newly installed capacity by the end of 2022, which means the US PV market will have an installation boom in the second half of this year.

The US extended the investment tax credit (ITC) and production tax credit for renewable energy power generation to 2050, resulting in an annual increase of 10% in solar power generation. The long-term availability of the federal tax credit provides incentives for more small-scale distributed power generation and the deployment of renewable energy, especially solar power generation in the residential?and commercial segments.