On August 16, President Joe Biden signed the Inflation Reduction Act into law, which directed billions of dollars to Americans looking to upgrade their homes, businesses and cars.
Americans with less than $150,000 can claim a $7,500 tax credit if they buy an electric car, according to a provision of the law.
The law also provides $9 billion in rebates to help people electrify their home appliances and make their houses more energy efficient. Americans can claim a tax credit for installing heat pumps in their homes.
The Inflation Reduction Act is putting in place $369 billion for clean energy programs and businesses across America.
Clean energy investors already have something to celebrate. In the months since the act was signed into law, renewable energy companies such as NextEra Energy Inc. have outperformed the S&P 500.
The law is controversial as is any law sweeping enough to decarbonize 40% of America's economy over the next eight years, as this law purports to do. One thing that is clear from an investing perspective is that clean energy catalysts on this level can give investors the chance to multiply their money many times over.
You may remember President Barack Obama's 2009 stimulus package, which gave billions of dollars to clean energy companies and created Tesla as we know it, according to Bloomberg. The shares of Tesla have returned more than 10,000% since their recent downturn. Nearly 1,000% of the clean energy companies that received loans or grants like Brookfield Renewable Partners LP have returned well over 1,000%.
The potential benefits for solar investors are particularly enticing. In the years after the 2009 stimulus package, America's solar industry grew by 2,500% and Biden's clean energy bill is much larger than that.
In 2023, the White House plans to assist 7.5 million Americans in putting solar panels on their rooftops - and that could be a major opening for YouSolar, a startup that helps its customers transition to the electric grid painlessly and seamlessly.
The global cost to decarbonize power grids could amount to more than $28 trillion, according to Bloomberg. That is a big deal for a company that could bring countless consumers towards an all-electric life.
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