Celebrating Progress and Charting the Future as IRA Turns Two

This week, on August 16, we commemorate the two-year anniversary of the Inflation Reduction Act (IRA) , the most expansive and significant climate legislation in US history.?

The bill includes numerous climate-focused initiatives, allocating hundreds of billions of dollars to usher in a green energy future. The investments made since 2022 represent the next generation of energy solutions, and is accelerating the development of a competitive, American energy marketplace.

Although the regulatory landscape is still evolving, these new market drivers are already yielding positive impacts. Caelux benefited significantly from the IRA’s tax incentives and follow on investments, and we remain deeply grateful for the momentum it initiated. As we expressed on the Act’s first anniversary , the IRA set critical wheels in motion for our company and the broader renewable energy sector.

Since President Biden signed IRA into effect, Caelux has achieved remarkable growth and success. We have a fully operationalized, 50MW line in Baldwin Park, where we are manufacturing perovskites on 1x2 square meter panels of glass. Our workforce has more than quadrupled in the last two years, and we have secured offtake for the first 18 months of production. We are currently in the process of finalizing our expansion plans to support customer demand, as we have secured 11 MOUs with module manufacturers both in the United States and abroad.??

Additionally, Caelux was named the top project winner for the 2024 Environment+Energy Leader Award Program , which recognized Caelux’s work to enhance the efficiency and affordability of solar while fostering green job growth and contributing to local economies, two outcomes made possible by the strategic funding and policy support embedded within the IRA .

The IRA’s Achievements (So Far)?

In just two years, the IRA has catalyzed significant growth in the renewable energy industry. The act has been instrumental in fostering innovation, creating jobs, and revitalizing American manufacturing in the clean energy sector.

Its key achievements include:?

• Attracting investment to the US renewable energy sector: The IRA increased the tax appetite for private sector investors who otherwise might not have been interested in the kind of returns that you currently see in the renewable energy industry.

• Promoting green energy job creation: The IRA is responsible for nearly 1.5 million jobs across the green energy sector. Reshoring manufacturing jobs is a bipartisan priority, and the IRA has played a central role in revitalizing the manufacturing sector, bringing back high-quality jobs to the US while strengthening the country’s clean energy infrastructure in the process.?

• Enticing manufacturers to the US: The IRA incentivized manufacturing these products in the US, effectively attracting manufacturers to the US and catalyzing factory expansions and new facility investments across the country.?

• Generating customer interest: The IRA has pushed down prices and accelerated a trend of solar panel affordability, generating customer interest and driving sales for Caelux and other companies.?

• Revitalizing former manufacturing hubs: The IRA helped create an incredible opportunity for communities to participate in the solar boom, revitalizing many former manufacturing hubs. For instance, Caelux is proud to build a domestic manufacturing capacity right here in Los Angeles , an opportunity that would not be possible without the IRA’s financial incentives.?

In many ways, the IRA has produced its intended results, driving significant investment in renewable energy, creating millions of green jobs, reducing carbon emissions, and positioning the U.S. as a global leader in the transition to a sustainable energy future.

Building the new energy economy requires the requisite technology solutions, but also needs a strong workforce and community buy-in from across the country. As companies are breaking ground and announcing job reports, we're also excited to celebrate gains made with all stakeholders–not just the private sector.?

Where Do We Go From Here?

IRA catalyzed the hope of a resurgence in US innovation and manufacturing returning.?

One survey by the National Association of Manufacturers found that 88 percent of respondents were optimistic about the sector’s future, the highest number in two years.?

The IRA has been a great head start, but if we want to sustain this growth and build an entire domestic manufacturing ecosystem, we are going to need to unlock more investment and engage a broader range of stakeholders.??

As we look towards the next phase of growth–training a green workforce, transitioning communities to clean energy, and expanding access to cheap electricity–it is clear that continued support from the federal government is necessary.?

Specifically, we need to give attention to

• Building out a truly domestic supply chain: We need to evaluate who we're buying from, whether they have the necessary supply, and if their investment base is substantial enough to support rapid expansion across the private sector. The Department of Energy needs to assess gaps in the ecosystem and develop funding mechanisms to support domestic growth while still ensuring that manufacturers have what they need to fulfill orders.

• Developing powerful and resilient energy grids: Energy grids are complex ecosystems and utility companies are not yet at the forefront of green energy transitions. Manufacturing, not to mention hydrogen, direct air capture, and AI data centers, can be incredibly energy intensive. As more companies expand and debut their products, they will need to deal with power upgrades, transformer lead times, and interconnection queues. Utility companies must be a part of our decarbonization strategy from the outset, which state and municipal governments can help facilitate.?

• Creating a competitive energy marketplace: Climate change is an all-encompassing challenge, and will require multifaceted strategies to effectively tackle. As such, building a robust marketplace for renewable energy is needed to catalyze green energy adoption. Startups should have ready access to federal grants, as the government is the best entity to incubate cutting-edge technology. With the requisite startup capital, companies will have a level playing field and those with the best unit economics will naturally rise to the top.?

Moving forward, we can achieve this through continued advocacy and lobbying from energy companies, collaboration between companies in the green energy sector, and follow-up legislation that extends the green energy investment time horizon.?

Proactive Progress Toward a Better Future?

At Caelux, we're committed to pushing the boundaries of solar technology and contributing to America's clean energy future.

We are already hard at work, making strides towards a greener future. But this is a journey we must traverse together if we want everyone to benefit from the IRA.?

We look forward to working closely with policymakers and key stakeholders to grow our business and expand our renewable energy programs.