Clean energy coalition urges Congress to prioritize clean energy in infrastructure plan
The Coalition for Clean Energy Jobs and Innovation is urging Congress and the Biden administration to prioritize clean energy in upcoming infrastructure legislation.
Specifically, the coalition is encouraging them to enact a 10-year extension of the Investment Tax Credit (ITC) and a direct payment option for projects claiming the ITC. A 10-year extension of the ITC with direct pay will provide businesses with the certainty they need to make long-term investments in clean energy. The direct pay provision will make project financing less dependent on the availability of tax equity, which will speed deployment.
The coalition consists of more than 100 organizations, including those representing manufacturers, homebuilders, electric cooperatives, clean energy, and other industries. They sent their request via letter to President Joe Biden, House Speaker Nancy Pelosi (D-CA), and Senate Leader Chuck Schumer (D-NY).
“Solar and storage are proven job creators that can modernize America’s power grid and tackle the climate crisis,” Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association (SEIA), said. “These are economywide benefits that extend far beyond just one industry, and that’s why a diverse coalition of leaders representing multiple sectors, technologies, and communities are asking Congress for long-term policy certainty for clean energy infrastructure.”
SEIA is part of the coalition, as is the Fuel Cell and Hydrogen Energy Association.
“Fuel cell technologies and hydrogen energy will be a critical component of America’s future energy policy in helping to both reduce emissions while creating good-paying jobs,” Morry Markowitz, president of the Fuel Cell and Hydrogen Energy Association, said. “The long-term extension of the ITC will help ensure America continues to be the leader in technology innovation by helping scale up clean energy industries like the fuel cell and hydrogen sector, fuel economic growth, and protect the environment.”
The coalition said that to reach 100 percent clean electricity by 2035, annual solar deployment from 2024 to 2028 will need to be twice as large as the current forecast. The solar ITC is a proven policy driver and continues to be one of the most influential solar policies. Wood Mackenzie found that the recent two-year extension of the ITC increased solar installation forecasts by 17 percent.
“Geothermal heat pumps are the most efficient technology to heat or cool a home or office building,” Doug Dougherty, CEO of the Geothermal Exchange Organization, said. “A long-term extension of the ITC will help our industry achieve better economies of scale, reduce the upfront costs for consumers, and develop innovative financing models.”
Clean energy policies will not only drive deployment, they said, but also create jobs. Currently, more than 400,000 Americans work in the industries supported by the ITC. According to the National Solar Jobs Census 2020, the solar industry would grow to support more than 900,000 workers by 2035 to support the level of deployment needed to reach President Biden’s 100 percent clean electricity target.
The ITC is the umbrella term that covers clean energy sources such as solar, geothermal, fuel cells, combined heat and power, and distributed wind.
