Microgrids would be eligible for federal clean energy investment or production tax credits under a bill recently introduced by US Sen. Ron Wyden of Oregon.
Wyden’s bill proposes to simplify long-term, performance-based energy tax incentives, replacing a jumble of 44 incentives that exist today. The bill strives for a technology-neutral approach that promotes clean energy and storage.
The proposed Clean Energy for America Act would shelve existing solar investment and wind production tax credits, which are scheduled to be phased out, as well as other clean energy incentives, in favor of investment and production tax credits linked to greenhouse gas (GHG) emissions reductions.
What’s eligible
Two common microgrid resources — energy storage and combined heat and power (CHP) — become eligible for clean energy investment tax credits (ITC) or production tax credits (PTC), the choice being left up to the applicant.
In addition, both microgrid software and hardware, along with demand response, would be eligible for either the clean energy ITC or PTC, according to Max Halik, a senior research associate at Lux Research.
Many of the benefits microgrids offer rely on software-based features, such as intelligent monitoring, real-time data collection, forecasting, analysis and systems management, as well as a new generation of digital power equipment and tools, Halik pointed out in an interview.
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