How can companies qualify for IRA subsidy?
Passed on August 16, 2022, the Inflation Reduction Act (IRA) was signed by Joe Biden to incentivize capital and private firms to develop and deploy clean energy technologies. With $369 billion invested, it is noted as the “most aggressive climate action act” in U.S. history. In this article, we will dive into the implications of Asian business in the States. Electric Loans for Renewable Energy
To enhance and finance the electric generation, distribution, and transmission facilities in rural areas, the Department of Agriculture is carrying out $1,000,000,000 electric loans for renewable energy. To 2031 September, nonprofits, including cooperatives and limited dividend or mutual associations, and for-profit businesses (must be a corporation or limited liability company) are eligible for application. The loans are eligible to build construction for facilities that generate renewable energy, including solar, geothermal, wind, hydropower, and biomass.
Since 2012, Chinese businesses have been expanding their construction for solar energy in the States. With a limited increase number of businesses establishing solar module factories from 2012 to 2018, Jinko Solar established its solar panel business in Florida in 2018. In 2023, Longi, Canadian Solar, Trina Solar, TCL Technology, and Huonen Solar established their solar module factories in Arizona, Ohio, Indiana, Texas, New Mexico, and South Carolina. These Chinese businesses mostly focus on the manufacture of solar batteries and modules, scaling from 1 GW to 5 GW.
USDA Assistance for Rural Electric Cooperatives
The Department of Agriculture carried out a $9,700,000,000 fund for electric cooperatives serving a predominantly rural area or a wholly or jointly owned subsidiary of such cooperatives for facilities such as demand side management, energy conservation programs, and on-grid and off-grid renewable energy systems. Funding mechanisms include loans and grants and are eligible to apply till 2031 September.
Domestic Manufacturing Conversion Grants The Department of Energy carried out grants in total amount of $2,000,000,000 for businesses in domestic production of efficient hybrid, plug-in electric hybrid, plug-in electric drive, and hydrogen fuel cell electric vehicles or components for these vehicles. Businesses interested in manufacturing electric vehicles could target this grant and it will be eligible till 2031.
Businesses in solar energy and electric vehicles are at a great position to apply for these fundings. For further application, logistic steps including register on SAM.gov and Grants.gov, utilize government-issued unique entity identifier (UEI) to check Entity Status and register in Grants.gov. If you are a business owner that is interested in these opportunities, please contact the US-China Sustainable Development Foundation for further insights and collaboration.
Reference
The United States Government. (2023, December 5). Inflation reduction act guidebook. The White House. https://www.whitehouse.gov/cleanenergy/inflation-reduction-act-guidebook/
The inflation reduction act and U.S. Business Investment. U.S. Department of the Treasury. (2023, November 15). https://home.treasury.gov/news/featured-stories/the-inflation-reduction-act-and-us-business-investment
Cato.org. (n.d.). https://www.cato.org/blog/iras-energy-subsidies-are-more-expensive-you-think
打压中国光伏11年，美国杀敌一千、自损一万. 打压中国光伏11年，美国杀敌一千、自损一万_世纪新能源网 Century New Energy Network. (n.d.). https://m.ne21.com/news/show-188893.html
