Inflation Reduction Act: What’s Next Begins Now

The Complexities of Energy-Efficient Change

Inflation Reduction Act funding and tax credits work to change the way everyone uses energy. Not only do these credits create opportunities for better energy efficiency across marketplaces, but they also drive long-term energy savings; when used and maintained properly, energy-efficient appliances and products can lower energy bills in the immediate and near future. These energy-efficient measures are more than just a cost-effective way to monitor and manage energy use for a robust and reliable grid — they also directly benefit the environment. Electric vehicles, solar solutions for power generation, home improvement products and more emit less greenhouse gases — both direct and indirect — and thus help slow down the effects of climate change and global warming.

How Does IRA Funding Affect Utilities?

From generation to transmission to distribution, utilities power our world. And as of late, they’re under increasing pressure to do so sustainably. Funding from the Inflation Reduction Act can help utilities meet the standards set for sustainable, energy-efficient operations and expedite the clean energy transition with solutions for individuals and businesses.

Taking advantage of additional funding, utilities can generate a sizeable clean energy impact across markets. Use of these incentives, for example, may help utilities’ home performance programs become more cost-effective in new areas that were previously too expensive. The resulting reduction of consumers’ financial burdens can cause participation in home performance programs to triple overnight. Tax credits available through the IRA also expand utilities’ resources; this financing supports the development of new technologies, products and capital projects that collectively work toward sustainable, energy-efficient outcomes.

Utilities’ planning for the next ten years will be critical. How can they maximize the use of federal incentives for a cleaner, safer energy future and still achieve their own energy-, environmental- and performance-related goals?