US to see renewable energy boom in wake of historic climate bill

Renewable energy is set for an unprecedented boom in the US in the wake of its first ever climate bill, with the capacity of solar and wind projects expected to double by the end of the decade and providing the bulk of total American electricity supply, new analysis has shown.

The passage of the legislation, known as the Inflation Reduction Act (IRA), will help propel the US towards the forefront of the clean energy economy, experts predict, helping it compete with China on the manufacturing and installation of solar panels, wind turbines, batteries and emerging zero carbon technology.

Previously, wind and solar developers had to rely upon short-term tax breaks and partner with banks or other large institutions. The new bill provides the certainty of a 10-year tax credit program and allows the credits to be transferrable to the developers themselves. There is also billions of dollars for the domestic manufacturing of clean energy components, as well as rebates for people to buy electric cars.

Climate campaigners have welcomed the legislation as a long-overdue breakthrough, although they have criticized aspects of the legislation that throw open large areas of public lands to oil and gas drilling. The concessions to fossil fuels were borne from a compromise struck with Joe Manchin, the centrist Democrat and key swing senate vote who has received more money in donations from the oil and gas industry than any other senator.

Still, even with the extra land and waters given over to drilling, several different analysts have forecast that the US should cut its planet-heating emissions by about 40% by the end of this decade, boosting the global effort to stave off disastrous climate change.

Such predictions could, however, be hampered by variables such as the supply chain problems currently hampering the production of electric vehicles, economic downturns, problems in building out transmission infrastructure to move clean electricity around the country and resistance from local communities to new wind and solar developments.