Manufacturers Ask Congress to Boost U.S. Clean Energy Production with Tax Incentives

Over 100 producers and manufacturers wrote President Biden and Leader Schumer, Speaker Pelosi, and the chairmen of committees expressing their strong support for long term clean energy tax incentives in federal budget reconciliation legislation.

“The pandemic and recent global conflicts have thrown energy markets and supply chains into turmoil, making it even more important to grow America’s energy manufacturing base,” says Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association. “The clean energy deployment and manufacturing incentives being considered by Congress are the blueprint to solving our energy security issues and would drive historic growth in domestic manufacturing and production. Manufacturers need policy certainty to make these capital investments.”

Signatories include members of the Coalition for Clean Energy Jobs and Innovation. They produce components and equipment that are critical to energy generation and storage, transmission, and efficiency. They are producers of steel and silicon, heat pumps, fuel cell, solar modules, heat lamps, and other important materials and goods. The letter explains how the legislation will increase existing production, revive key jobs, restart idled plants, and lead to significant investment in manufacturing and production in the United States.

Current geopolitical questions have fueled the debate about how the United States sources electricity. Congress has the opportunity to support clean energy production and deployment in America.

“We have a generational opportunity to quickly create tens of thousands of high-quality solar manufacturing jobs in America and strengthen our energy security,” comments Scott Moskowitz, director of market strategy and public affairs at Q CELLS America, a solar module manufacturer. “With these policies we can lower energy costs and grow our manufacturing base, but without them, our supply chains will remain strained and our clean energy future will be at risk. It’s imperative that that we pass this legislation as soon as possible.”

Long-term tax incentives will increase manufacturing capacity to meet rising demand for clean energies, including U.S. Steel production. By 2030, the solar industry alone will require 2.5 million tons of steel per year.

“The 1-2 punch of pandemic and war have underscored the need for a robust domestic supply chain here in America. It’s not just energy independence. It’s also manufacturing independence,” mentions Nextracker CEO Dan Shugar, a solar tracker manufacturer. “We’re helping forge that new reality by re-shoring our manufacturing and de-risking our company’s supply chain in the process. Congress can encourage more companies to do the same by enacting manufacturing tax credits as part of a fiscally balanced energy bill.”

The letter highlights how the U.S. has a wealth of resources and tools to increase domestic production. It also outlines how the U.S. can put in policies to ensure that companies are willing to invest in areas that will benefit local and state economies.

“The passage of clean energy tax credits will enable Solectria to immediately expand PV inverter production in the U.S. and solidify our position as a leading PV inverter supplier,” states Mark Goodreau, general manager at Solectria Renewables LLC, a solar inverter manufacturer. “For the industry overall, this will guarantee robust long-term growth, more new jobs for American workers, and a faster transition to renewable energy.”

Get a copy the manufacturers letter here.