How the Inflation Reduction Act Transforms Energy Management

The Inflation Reduction Act

The Inflation Reduction Act (IRA) aims to ensure America remains a global leader in clean energy. It has included a $370 billion investment in clean energy and proposes a range of policy measures. This is to reduce inflation and promote economic growth while also addressing climate change. Although the policy measures encompass several industries and objectives, their main impact on the energy and power sector is to increase the economic viability of clean energy projects and expedite project development, especially after a slowdown caused by the pandemic.

The act encompasses a range of initiatives  spanning many sectors, including energy, manufacturing, environment and water, transportation, vehicle manufacturing and agriculture. Some measures include tax incentives for clean energy investments, funding for scientific research, and investments in infrastructure projects to create job opportunities and stimulate economic growth. Additionally, the IRA has policies that go beyond energy and manufacturing, aimed at a wider effort to decrease greenhouse gas emissions. These policies include tax incentives for electric vehicles and regulations that limit carbon emissions from power plants and other sources.

Energy Management

Overall, the Inflation Reduction Act will generate numerous opportunities for the energy industry, and it will have a positive impact on energy managers, including private companies and public organizations such as co-ops and utilities. Here's a quick overview of several key impacts of the Inflation Reduction Act on energy management.

Reduce Dependence on Fossil Fuels

The IRA is expected to reduce America's dependence on fossil fuels by promoting renewable energy production. The act proposes measures to increase solar and other renewable energy production, unlocking clean energy options for utilities and developers. This would reduce the country's reliance on fossil fuels and protect US consumers from volatile fuel price swings that can result from global socioeconomic conditions. In addition, the proposed incentive programs are expected to more than double wind and solar energy production capacity by 2030, significantly boosting the clean energy sector. By reducing dependence on fossil fuels and increasing investment in renewable energy, the IRA aims to create a more sustainable and resilient energy system for the future.
Increase Grid Reliability

Encourage Utilization of Domestic Products

The IRA includes incentives to encourage developers to partner with domestic manufacturers on their energy projects, which is expected to boost the usage of American manufacturers. This could result in sourcing implications for the energy management sector, shifting their approach to development. The IRA’s support for domestic manufacturers can lead to the creation of new job opportunities and economic growth. This is especially beneficial for the manufacturing industry, which has been struggling with fierce competition from foreign producers.

Increased Interest in Development

The IRA is set to raise demand and interest in clean energy development due to its incentives, making new developments much more economically achievable. These incentives are already positively impacting clean energy project development, as many cities and developers are exploring how they can use available land for wind or solar development. Although the portal for claiming the incentives is still in progress, it's essential to begin preparations to take advantage of these opportunities since they are offered on a first-come, first-serve basis.

Learn What’s Possible with Evergy Energy Partners

We’re conductors of possible. As the energy marketing division of investor-owned utility Evergy, we have a long-standing reputation for best-in-class energy management solutions. Evergy has provided reliable, affordable energy to consumers for more than 100 years, and for the past 20 years, our team has used that knowledge to advise municipalities, co-ops and other power providers on how to manage their energy safely, efficiently, and reliably.

Evergy Energy Partners is ready to guide you through the process and help you determine which incentives and bonuses you are eligible for under the IRA. With these incentives, we anticipate that the IRA will greatly increase demand and interest in clean energy development. We can help you achieve your energy goals by providing tailored solutions that meet the unique needs of each client. Ready to see what’s possible? Get in touch today!