As we are amidst the Holiday Season, it is important to shine light on all that the renewable energy industry should be thankful for this year. We are in such a dynamic industry that sometimes it’s difficult to look back and recognize all the positive things that happened during the year. Such an eventful year will certainly not be one that any of us will forget anytime soon. The year featured some industry lows that have only made the highs even more thrilling on this solarcoaster.
When it comes to being thankful this year, the first thing that comes to mind is the passage of the IRA, this historic law will change the power and energy landscape in the US for generations to come. But we have more than just the IRA to be thankful for driving our industry forward.
Expansion of the ITC/PTC
We expanded the ITC/PTC to an even stronger and comprehensive program. With all the new changes and expansions included in the IRA it is easy to overlook one of the most significant impacts of the bill. Projects will now be eligible for an ITC or PTC tax credit until 2035. For years, the practice of safe harboring and worries about the next stepdown forced the industry into a periodic scramble. Without a long-term policy vision, it was hard for developers, who are looking for as much stability as possible, to build their project pipelines with complete assurance. This type of long-lasting policy stability is exactly what the industry needs; as production ramps up to meet state and federal renewable energy goals the expansion of the ITC/PTC might be the biggest reason why.
An Equitable Future for the Clean Energy Transition
The transition to renewable energy brings with it not just the promise of a cleaner and healthier planet but also the chance to assist those communities most impacted by climate change. For years, low income and communities of color have been those at the forefront of fossil fuel pollution. The IRA included multiple provisions to tackle this head on. This includes the energy community 10% credit and the low income 10-20% credit. This is the first step in writing past environmental wrongs. Now those communities can be serviced with clean renewable energy that will allow them to thrive, without having to worry if the air is safe to breath.
Renewable Energy Generation Hitting a Key Milestone
2022 can also be remembered as the year that renewable energy electrical generation surpassed 20%! According to the EIA, renewable generation will be 24% of the US electric mix in 2022. This accomplishment should not go unrecognized. Ten years ago, Solar was a minor part of the US energy mix, where renewables were dominated by Hydropower and Wind was starting to grow. Today, Solar and Wind technology are pillars of US renewable energy and pushing renewables to a higher energy mix year after year.
The Amazing People in this Industry
And if there is one thing that we can all be thankful for it’s the opportunity to work with the talented people within the renewable energy industry. This year, many of us were able to reconnect with friends and colleagues at both ACP and RE+ and the opportunity to meet in person was certainly missed. For the renewable energy transition to occur, we as an industry are growing rapidly and industry veterans continue to prioritize attracting and training new entrants to facilitate this expansion.
