"US Climate Law Spurs Billion-Dollar Renewable Power Acquisition Deal"
The Inflation Reduction Act in the US has introduced a provision called "direct pay," which allows nonprofits, tribal communities, schools, and other entities that don't pay federal taxes to access clean-energy tax credits directly. This provision is seen as a game-changer, as it eliminates the need for nonprofits to partner with for-profit groups to access tax credits, streamlining the process and increasing the economic benefits. Direct pay opens up opportunities for community ownership and can fuel decarbonization efforts in cities, public utilities, and rural electric cooperatives. It also promotes equity and energy self-determination for underserved groups. The provision has already had an impact, with examples of direct-pay projects emerging, such as rooftop solar and battery installations at nonprofit organizations.
