April 23, 2021: Scale Microgrid Solutions supports the MICROGRID Act that has been introduced into the US House of Representatives.
In short, the bill would provide tax credits for microgrid properties.
A qualified microgrid would qualify for a tax credit of 30% if construction takes place before 2025, 26% if before 2026, 22% if before 2027 and 10% if before 2028.
Entities such as state or local governments, Indian tribal governments, or not-for-profit electric utilities can receive a direct payment instead. We’re hopeful that this will be especially beneficial to our mission to rapidly deploy cleaner and more resilient energy infrastructure within Indian Country.
Tim Hade, Co-Founder and COO of Scale Microgrid Solutions says, “microgrids are a critical component of building sustainable, affordable, and reliable energy infrastructure in the 21st century. This bill will accelerate the deployment of microgrid technology, ensure that our nation is better prepared to mitigate threats to our energy security, and create thousands of high paying jobs for US workers. We urge Congress to pass this bill so that communities across the country can benefit from cutting-edge microgrid technologies.”
In addition, this week, the Senate is expected to vote on a bill that creates an emissions-based incentive that would be neutral and flexible between clean electricity technologies. Taxpayers are able to choose between a production tax credit (PTC) or an investment tax credit (ITC) based on the carbon emissions of the electricity generated. Any power facility of any technology can qualify for the credits, as long as the facility’s carbon emissions are at or below zero.
Those who elect the PTC will receive a credit equal to 2.5 cents per kilowatt hour of electricity produced and sold in the 10 year period after a qualifying facility is placed in service. Those who elect the ITC will receive a credit worth 30 percent of the investment in the year the facility is placed in service. Grid improvements are also eligible for the ITC.
For corporations, the bill provides greater flexibility and encourages increased deployment of distributed energy resources.
Supporting these bills is an important step to prioritizing the grid infrastructure changes needed for clean, resilient and affordable energy. Scale wants to thank Representative Panetta and Senator Wyden for their forward thinking policies and encourage other representatives to support this critical legislation.
About Scale Microgrid Solutions: Scale is a vertically integrated distributed energy platform, with a core focus of designing, building, financing, and operating cutting-edge distributed energy assets that offer cheaper, cleaner, and more resilient power. As a team of energy and financing experts, Scale enables customers to take charge of their energy infrastructure and future-proof their businesses. Learn more at https://www.scalemicrogridsolutions.com/.
Scale Microgrid Solutions, LLC
Nicole Green, Director of Marketing
nicole.green@scalemicrogridsolutions.com