But prospects for its passage appeared to improve considerably Thursday when Sen. “Microgrids are an exciting, potent means to further decarbonize our electricity supply and to help add reliability.” Prospects for climate bill improveĪ few industry members cautiously predicted the bill will pass both the U.S House and Senate. “The support offered by the IRA through this tax credit helps foster development of a range of energy and decarbonization technologies, which often work best in microgrid configurations,” said Irvin. It also includes the expansion of the ITC to include microgrid controllers as well as standalone energy storage and other technologies, said Ken Irvin, an attorney and co-leader of Sidley Austin’s global energy practice.
It now goes on to the House, where it is expected to win approval this week. Update: The Senate passed the bill Sunday 51-50 with Vice President Kamala Harris casting the tie breaking vote. The bill includes up to 50% in investment tax credits (ITC) for microgrid components, the ability for investors to sell tax credits to third parties - rather than getting involved in complicated partnerships - and a higher production tax credit (PTC). “Combining all the impacts, this bill will cut the cost of microgrids by 10% to 50%,” said Yashar Barut, CEO of Power Market Solutions and former director, Citigroup Commodities Trading. His comments echoed the views of numerous microgrid industry members.
“This is a big, big deal,” said Cameron Brooks, executive director of Think Microgrid about the Inflation Reduction Act (IRA), an inflation and climate bill that’s now before Congress and expected to cut microgrid costs.
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