Unstoppable Growth: The Inflation Reduction Act’s One-Year Anniversary
A worker installing solar panels on a roof. The IRA has spurred massive growth in renewable energy.
From campaign trail promises to final enacted legislation, those of us in the energy community have been thrilled for the boost that the Inflation Reduction Act (IRA) has provided American business. As we look back on and celebrate the one-year anniversary of this landmark legislation, there are many milestones to acknowledge and many opportunities on the horizon.
The law provides significant incentives aimed at domestic manufacturing – from infrastructure to technology – all focused on clean energy innovation. We have seen the IRA inspire and ignite global discussions and make the U.S. one of the most attractive markets for clean energy after a four-year hiatus of missed opportunities to lead.
How the IRA has benefited U.S. businesses and consumers
The biggest beneficiaries of this legislation are the American people. The impacts of smart energy policy and infrastructure building will resonate for generations. To list out all the benefits of the law would take up space we don’t have, so in brief, we will focus on growth areas where our clients reside and where we have deep expertise.
Investment in Clean Energy Infrastructure: The Act's provisions have facilitated considerable public and private sector investments in clean energy infrastructure, particularly in renewable projects, EV tech, and energy storage to name a few. The investment trend has led to a surge in positive public sentiment, opportunities for expansion, and increased public/private sector collaborations.
Reduced Energy Costs: Thanks to the measures implemented under the law, energy costs have stabilized, if not decreased, in various regions. This has directly benefited consumers and indirectly supported our clean energy clients. Lower energy costs have made renewable energy sources more appealing and competitive, opening new markets and allowing businesses to reach previously untapped demographics.
Encouragement of Innovation: The Act's focus has also encouraged innovation within the energy sector, particularly the clean side of things. Financial incentives and support for research and development have enabled our clients to get products to market more quickly, access funds to grow faster, and think of solutions that they might otherwise have mothballed due to lack of funding or research.
Regulatory Environment: While the law primarily targets economic stabilization, the ensuing regulatory environment has been favorable for corporate growth. Stricter emission standards and incentives for clean technology have created a more level playing field and enabled our clients to compete more effectively with traditional energy providers. However, we run into corporate teams both large and small who underestimate the level of expertise it takes, from utility industry knowledge and permitting challenges, to essential federal, state and local level government relations. Getting things done in this fast-paced environment means knowing how to navigate B2G conversations and relationships.
Job Creation: The clean energy sector has seen a remarkable boost in job creation, thanks in part to the IRA. We have helped our clients navigate this growth by emphasizing their commitment to local communities and showcasing their role in fostering economic development. Every single one of our clients is busy with recruiting and creating competitive employment platforms that offer to be part of the exciting 21st-century workforce.
Consumer Sentiment: The national conversation around inflation has led to an increased awareness of economic issues, including energy costs. Challenges exist in each region of our country, from the cost of home heating oil to essential electric utility bills. While the clean transition doesn’t offer an immediate salve, it does offer a compelling long-term vision and opportunity to increase efficiency and reduce household energy spending while also dialing back emissions. Silverline has leveraged this opportunity to help our clients communicate the economic advantages of clean energy, further enhancing public perception and acceptance.
The Inflation Reduction Act has shaped an environment in which the clean energy transition will have a chance to save us from record heat, destructive forces of nature and ultimately the demise of civilization as we know it. This legislation offers all of us a fighting chance. From fostering innovation to creating jobs, the past year has been instrumental in advancing the clean economy, and by extension, our mission to partner with clients to advocate and innovate for a sustainable future. We look forward to continued collaboration with our clients, partners and stakeholders, as we leverage these positive developments in the years to come.
