A study funded by the BlueGreen Alliance, conducted by Dartmouth and Princeton researchers, called "Effects of Renewable Energy Provisions of the Inflation Reduction Act on Technology Costs, Materials Demand, and Labor," examines the impacts of the Inflation Reduction Act on the US wind and solar industries.
The study analyzes the effects of the 45X Advanced Manufacturing Production Tax Credit (45X MPTC) and the clean electricity production and investment tax credits provided by the Inflation Reduction Act. The 45X MPTC offers tax credits for each US-made clean energy component, such as PV modules, batteries, and certain critical minerals.
As a result of the 45X MPTC, the cost of solar panels assembled in the US and made from 100% US-made components is now 30% cheaper than imported solar panels. US-made onshore and offshore wind components like towers, turbine blades, and nacelles will also be cheaper than imported components for the first time.
Developers can qualify for full clean electricity tax credits by paying workers a prevailing wage and using a certain percentage of registered apprentices. Meeting this requirement results in a cost reduction of more than 60% for solar or onshore wind production and 20% for offshore wind production.
The researchers predict that the implementation of the Inflation Reduction Act and the associated tax credits will create an additional 4 million solar and wind jobs. The US solar market is projected to triple in size by 2028.
Source: Electrek