US Climate Law Boosts Solar & Battery Adoption, While Hydrogen, Other Initiatives Lag Behind

by | Apr 3, 2024 | Daily News, Environmental News

Home » Environmental News » US Climate Law Boosts Solar & Battery Adoption, While Hydrogen, Other Initiatives Lag Behind


The United States has seen a significant uptick in efforts, as US climate law boosts solar & battery adoption, to reduce carbon emissions following the passage of President Joe Biden’s Inflation Reduction Act (IRA) in 2022. Analysts and scientists report that the pace of cutting carbon emissions has doubled since then, with over 80 projects focusing on solar, wind, and energy storage benefitting from the law’s mix of direct payments and tax credits.

US climate law boosts solar& batteries adoption

The IRA, alongside the Bipartisan Infrastructure Law, injected $239 billion into clean energy, electric vehicles (EVs), building electrification, and carbon management, marking a 38% increase from the previous year. However, experts caution that there’s still a long journey ahead to fulfill Biden’s broader climate ambitions of achieving net-zero emissions by 2050.

Two years after the landmark climate law’s enactment, certain sectors such as electrical power, battery manufacturing, and traditional clean energies like wind and solar have emerged as early winners. The legislation has also encouraged heightened investment from Asian and European companies in the US, spurring Europe to develop its own Green Industrial Plan to remain competitive.

Despite these successes, challenges persist. State and local regulations have impeded the development of crucial infrastructure like new transmission lines, while the rollout of EV charging stations has not met initial expectations. Moreover, certain sectors like hydrogen, carbon sequestration, geothermal, and nuclear energy have lagged behind in terms of IRA incentives, highlighting the struggle to align all pieces of the clean energy puzzle.

Oil companies, in particular, have raised concerns over the criteria for tax credits allocated to hydrogen fuel plants. Exxon Mobil’s Chief Executive, Darren Woods, expressed reservations, signaling potential setbacks for a major hydrogen plant project in Texas. The proposed regulations favor renewable-powered hydrogen plants over those fueled by natural gas, prompting debates over the regulatory translation and alignment with the IRA’s objectives.

Even in the realm of electric vehicles, practical barriers abound. A lack of transmission lines connecting clean energy projects to the grid and stringent local content requirements for EVs have complicated the utilization of IRA tax breaks. US automakers fear an influx of cheaper Chinese EVs flooding the market, triggering discussions around tariffs and content rules.

While the US climate law boosts solar & battery adoption, challenges persist in translating legislative intentions into actionable regulations. Regulatory hurdles, the politicization of certain clean energy segments, and concerns over global market competitiveness underscore the complexities of transitioning to a greener future.

As stakeholders continue to navigate these challenges, collaborative efforts between government, industry, and environmental advocates will be crucial in driving sustained progress towards a more sustainable and resilient energy landscape.

Also Read: Tesla Increases Price Of Model Y By $1000 In USA


  • Sarah Tancredi

    Sarah Tancredi is an experienced journalist and news reporter specializing in environmental and climate crisis issues. With a deep passion for the planet and a commitment to raising awareness about pressing environmental challenges, Sarah has dedicated her career to informing the public and promoting sustainable solutions. She strives to inspire individuals, communities, and policymakers to take action to safeguard our planet for future generations.

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