- Solar Alliance Energy (SOLR) has provided an update on the Inflation Reduction Act (IRA), which was signed into law on August 16
- The Inflation Reduction Act provides substantial long-term support to the solar and energy storage industry
- The proposed Investment Tax Credit (ITC) increases that tax credit from 26 to 30 per cent for projects completed in 2022
- This climate initiative is aimed at reducing greenhouse gas emissions by 40 percent below 2005 levels by 2030
- Solar Alliance is an energy solutions provider focused on commercial and industrial solar installations
- Solar Alliance Energy (SOLR) opened trading at C$0.12
Solar Alliance Energy (SOLR) has provided an update on the Inflation Reduction Act (IRA), which was signed into law yesterday.
“The Inflation Reduction Act is the largest climate bill in U.S. history and provides substantial long-term support to the solar and energy storage industry,” said CEO Myke Clark.
“For Solar Alliance and our customers, the new legislation provides significant savings on solar systems through increased tax credits that can reach as high as 60% of a project’s capital costs. As a company that is 100 per cent focused on the U.S. solar industry, Solar Alliance is well positioned to continue our growth in the commercial and utility solar sector.”
The climate initiative includes long-term solar and storage tax incentives, investments in domestic solar manufacturing and other critical provisions that will help decarbonize the electric grid with significant clean energy deployment.
- The Investment Tax Credit (ITC) is extended to 2033 and raised to 30 per cent
- There are additional investment tax credits for U.S. content, project location and low-income support that can increase the ITC to 60 per cent for eligible projects
- Stand-alone energy storage also becomes eligible for this credit
- The ITC becomes available for costs of interconnection for projects with a net output of less than 5 MW. The majority of Solar Alliance’s solar system sales, and projects are below this threshold and will benefit from this inclusion
- Project owners will be allowed to sell most energy-related tax credits to other companies without having to resort to complicated tax equity structures. For the type of projects Solar Alliance is developing, this provision could reduce transaction costs and make the process of monetizing tax credits much more streamlined
“This climate initiative is aimed at reducing greenhouse gas emissions by 40 percent below 2005 levels by 2030 through a series of initiatives that would directly benefit solar consumers. This legislation aligns perfectly with our growth strategy and will help support jobs and clean energy deployment in the U.S.,” concluded Clark.
Solar Alliance is an energy solutions provider focused on commercial and industrial solar installations. The Company operates in Tennessee, Kentucky, North/South Carolina and Illinois and has an expanding pipeline of solar projects in the United States.
Solar Alliance Energy (SOLR) opened trading at C$0.12.
