Big News for CT Energy Sector
The recently passed Inflation Reduction Act will likely change the CT energy sector. Specifically, the law promotes green energy production and energy efficiency. Ideally, it should reduce the cost of electricity over time. But how might it really affect CT electricity rates? Let’s see how the Inflation Reduction Act could benefit the CT energy sector.
What’s in the Inflation Reduction Act
According to the National Law Review, law extends current investment tax credits (ITC) for clean energy projects until 2024. That particularly affects many wind and solar projects. Also, if a green energy project meets wage and apprenticeship requirements, its ITC and production tax credits (PTC) will get a 5 times multiplier. That means green energy companies can save more from their taxes. As a result, they could help create more jobs in clean energy.
In fact, CTInsider reports that could be as high as 9 million new jobs. Solar and clean hydrogen projects could see similar benefits if they meet certain conditions.
Second, the bill offers tax credits of 10% – 30% for “clean living” homes and businesses that install energy efficient products. These kinds of tax credits cut the upfront cost for home and business owners to become more energy efficient. According to The Patch, some CT residents could claim up to $1,200 in yearly tax credits. That’s $600 for energy-efficient windows and $500 for energy-efficient doors.
Third, the act sets aside $60 billion for air quality and green energy projects in poor neighborhoods. The act also spends $1 billion to improve energy use in low-income housing projects.
How the Act Affects Your Rates
But how does this help CT’s high electricity bills?
While it’s difficult to be absolutely certainty, the act could speed up the spread of green energy projects. In the short term, CT customers could see more renewable energy plans at better pricing. In the long term, less reliance on natural gas for electricity generation means cleaner energy at lower prices.
Future of CT Energy Sector
In summary, this act does go a long way to fight climate change. Especially by incentivizing clean energy products and energy production in CT. But in the long run, it could help put keep money in your pocketbook. Find out how when you keep up with the news that affects your bills at https://www.ctenergyratings.com. You can also shop for great plans and find ways to save money on lower electricity rates.