Build Back Better Act passed by the US House of Representatives, bringing storage ITC closer

The US House of Representatives has passed Joe Biden's Build Back Better Act, which now advances to the Senate for further deliberation. The package provides USD 555 billion in clean energy and climate initiatives.

The vote on Friday was heavily partisan, with only one Democrat voting against it, 220 to 213. The USD 1.75 billion spending package will meet substantial opposition in the Senate, where it will need the votes of all 50 Democrats.

A ten-year extension of the solar investment tax credit, as well as tax credits to assist the domestic manufacture of PV equipment, are among the renewables incentives included in the legislation, the specifics of which were released last month.

"Another giant step forward in carrying out my economic plan to create jobs, reduce costs, make our country more competitive, and give working people and the middle class a fighting chance," Biden said of the bill's passage.

The president had a great result after signing a USD 1 trillion infrastructure bill into law earlier this week. The House passed a bill earlier this month that included investments in modernizing electrical infrastructure to support new renewables.

On Friday, the House enacted legislation providing incentives for US manufacturers at every stage of the PV manufacturing supply chain, from polysilicon production through solar cells and fully completed modules.

"Another giant step forward in carrying out my economic plan to create jobs, reduce costs, make our country more competitive, and give working people and the middle class a fighting chance," Biden said of the bill's passage.

The president had a positive result after signing a USD 1 trillion infrastructure bill into law earlier this week. The House passed a bill earlier this month that included investments in modernizing electrical infrastructure to support new renewables.

The House enacted legislation providing incentives for US manufacturers at every stage of the PV manufacturing supply chain, from polysilicon production through solar cells and fully completed modules.

The Solar Energy Manufacturing for America (SEMA) Act was sponsored by Georgia Senator Jon Ossoff earlier this year and was enthusiastically received by US-based manufacturers such as First Solar and Q CELLS America.

According to a statement released by Ossof the legislation “will supercharge domestic solar manufacturing” and help the US reach a goal of having solar account for 40% of US energy by 2035."

“Demand for solar energy is skyrocketing, and we need to be building and manufacturing this technology here in the United States, reduce our reliance on imports from China, and meet the moment,” Ossoff said.

The majority of the clean energy and climate support in the Build Back Better bill is for extended tax credits for utility-scale and residential renewable energy, transmission and storage, and clean energy manufacturing, with a total cost of USD 320 billion.

A total of USD 110 billion will be set aside for specific incentives to encourage the development of new indigenous supply chains and technologies like solar and batteries.

According to Gregory Wetstone, CEO of the American Council on Renewable Energy, the act's adoption by the House marks a "critical milestone" in America's attempts to address the climate crisis.

"The legislation establishes a stable, predictable, and long-term clean energy tax platform that will spur critically important investment in renewable power, energy storage, and advanced grid technologies," he said.

The Solar Energy Industries Association, for example, is now asking the Senate to wrap up its deliberations and deliver the bill to Vice President Joe Biden for signature. "Decarbonizing the electric grid will add close to one million Americans to the solar workforce by 2035," said Abigail Ross Hopper, the trade group's CEO. "After months of negotiation, we are on the verge of approving policy that will take a meaningful step toward addressing the climate crisis."