From pv journal USA
Investments within the US renewable power market are anticipated to hit $114 billion in 2031, up 78% from the $64 billion whole funding by the tip of 2021, fueled by the momentum of decarbonization from landmark of the US Inflation Discount Act. Wooden Mackenzie offered an preliminary evaluation in its newest report on how the IRA would assist the growth of US renewable power gear manufacturing capability.
“The IRA will utterly rework US renewable provide chains, incentivizing the reopening of closed amenities in addition to offering alternatives to construct total provide chains in gear from scratch,” mentioned Daniel Liu, head of business asset efficiency at Wooden Mackenzie.
Two key provisions of the IRA are doubtless game-changers for gear producers. The primary is superior manufacturing manufacturing credit (AMPC) for US-made renewables gear. The second provision is the motivation for builders of US renewable power tasks to buy domestically sourced gear with further tax credit. To qualify, 40% of all gear have to be American-made for tasks put in earlier than 2025, and 20% American-made for offshore wind tasks. This requirement will increase to 55% beginning in 2027 for the offshore wind market, the report says.
“It is excessive stakes for US gear gross sales, because the IRA supplies incentives that lower the price of manufacturing photo voltaic panels, storage gear and wind towers within the US wherever from 4% to 30% ,” mentioned Liu. “This, together with tariffs on sure imports, may put home manufacturing in a value aggressive place with imported gear.”
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