Solar Energy Industries Association Welcomes New Guidance on Domestic Content Bonus Credit

Strategic Insights -

The U.S. Department of the Treasury's release of new guidance on the domestic content bonus credit has been met with enthusiasm from the Solar Energy Industries Association (SEIA). The guidance aims to encourage the use of American-made clean energy equipment and components by clean energy developers. According to Abigail Ross Hopper, president and CEO of SEIA, the new guidance is a crucial step forward, supplementing the manufacturing renaissance sparked by the Inflation Reduction Act (IRA).

Key Takeaways:

  • The U.S. Department of the Treasury has released new guidance on the domestic content bonus credit, which will govern its implementation in the Inflation Reduction Act (IRA).
  • The domestic content bonus credit is valued at up to 10% for projects using the Investment Tax Credit (ITC) and 0.3 cents/kWh for projects using the Production Tax Credit (PTC).
  • The SEIA supports onshoring a domestic clean energy supply chain and believes the new guidance will drive additional investment and revitalize communities across the country.
  • Over $13 billion of new domestic manufacturing investments have been announced since the IRA's passage, with the domestic content bonus credit being a critical piece of the puzzle.
  • Developers can now utilize the domestic content bonus credit for projects beginning construction this year, speeding up the deployment of clean energy in the near-term.
  • Abigail Ross Hopper, president and CEO of SEIA, advocates for analyzing the guidance and providing input to maximize the impact of the IRA.

Statistics:

  • Up to 10% bonus credit available for projects using the Investment Tax Credit (ITC)
  • 0.3 cents/kWh bonus credit available for projects using the Production Tax Credit (PTC)
  • Over $13 billion in new domestic manufacturing investments announced since the IRA's passage
  • Projects beginning construction this year can utilize the domestic content bonus credit

Sources:

  • "U.S. Department of the Treasury Releases Guidance on Domestic Content Bonus Credit in the Inflation Reduction Act," Solar Energy Industries Association
  • Statement from Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association (SEIA)