Photovoltaic market is expected to benefit from U.S. inflation-cutting bill

On August 7, the U.S. Senate voted 51-50 to pass the "Inflation Reduction Act of 2022" (IRA) proposed by Democrats. A series of measures such as climate change, thereby reducing government deficits and solving economic problems such as inflation that the people are facing now.

Among them, to cut inflation, the bill plans to spend $369 billion in the energy and climate sectors, including tax credits (ITC) for clean power and energy storage industries, and $40 billion in subsidies and loans for states and utilities project to wean itself off fossil fuels.

It is reported that the tax credit policy (ITC) is an important policy to promote the development of photovoltaics in the United States. Before 2008-2016, benefiting from the 30% tax credit granted by the ITC policy, the newly installed photovoltaic capacity increased rapidly; during the period of 2017-2018, the ITC tax credit was reduced, and the newly installed photovoltaic capacity entered a short-term trough; 2019 Year-to-date, under the catalysis of the ITC policy, the U.S. photovoltaic market has continued to grow; in 2021, the U.S. will achieve 26.9 GW of new photovoltaic installed capacity, ranking second in the world, +40% year-on-year, with a cumulative installed capacity of 123 GW, second only to China and the European Union. Therefore, market participants speculate that the provision of tax credits (ITC) for the clean power and energy storage industries proposed by the Inflation Cut Act will help drive the continued growth of the U.S. photovoltaic market.