Solar company praises'most important climate bill' in modern times

The Inflation Reduction Act is currently being pushed through the Senate, and it is being hailed by the CEO of a residential solar power provider as perhaps the most important climate bill in modern times.

SunRun CEO Mary Powell told Yahoo Finance Live that they're really excited about it because they're sitting on the precipice of what could be the most impactful climate legislation of our lifetimes. We believe that it is fundamentally accelerating the customer-driven revolution to a more sustainable, independent, resilient, and affordable energy system for Americans. The bill, if passed, would be a major breakthrough for clean energy efforts in the U.S. But many have cheered it as a significant step forward in tackling climate change.

The Inflation Reduction Act would reduce greenhouse gas emissions by 31% to 44% from 2005 levels, according to a preliminary analysis by independent research provider Rhodium. That pushes the U.S. closer to the Paris Agreement goal of limiting global warming to 1.5 degrees Celsius. The earth was already warmed by about 1.1 degrees in the last century.

Tax credits for clean energy producers are the main source of the reduction in U.S. emissions. The proposed legislation aims to invest in clean technologies such as carbon capture that have yet to scale. There are provisions that aim to increase domestic manufacturing for batteries, solar, and offshore wind.

Part of what this does is to provide stability for the industry, in terms of the work it's already doing for customers, and that's why it's important to make no mistake, said Powell. Another feature of the legislation is that it focuses on making green technology more affordable for consumers.

One program sets aside $4.5 billion for rebates to help households electrify their homes with more energy-efficient appliances and heat pumps. Electric vehicle owners may be eligible for an expanded tax credit.

These upgrades may have the added benefit of lowering energy prices in the medium term, as well as shrinking the nation's carbon footprint. Inflation Reduction Act would result in a $730 to $1,135 reduction in household energy costs in 2030, compared to 2021, according to Rhodium's analysis.

One of the criticisms of the transition between households is that the benefits tend to be concentrated among higher-income consumers who can afford the upfront costs for solar panels, EVs, and heat pumps.

Powell stated that the legislation would speed up efforts to bring solar panels to lower-income Americans, as the Inflation Reduction Act would distribute these technologies to a wider base of Americans.

This just makes it even more affordable for customers to go solar by delivering a proposition that can deliver even greater savings for them, Powell said. At the same time, the backdrop is that we're seeing energy inflation that is just really remarkable. Utility rates are rising all over the country. It's so important to know that these things are conspiring to have this be a monumental time in this space in order to help customers move quickly to a cleaner, more cost-effective solution.