A slimmer version of Biden’s Build Back Better bill is back on the table, lighting a path for solar companies
Build Back Better is back… Well, almost. Yesterday Democratic Senator Joe Manchin struck a surprise deal with Dems to support a climate and tax bill, reopening the door for some — but not all — of Biden’s agenda. Manchin initially opposed Biden’s “Build Back Better” plan on fears it would spike #flation, but says the new bill will do the opposite:
- The Inflation Reduction Act is tinier than Biden’s $2T+ proposal, which also covered education and health. But it aims to spend a record $369B on climate programs and reduce the deficit by $300B. How? By raising $739B in taxes, largely through a 15% minimum tax on mega-corporations.
- What’s included: $60B for clean energy infrastructure (think: wind turbines and EV factories), $60B for climate adaptation in hard-hit communities, and more.
- For consumers: The bill would extend the $7.5K tax credit for new EVs, and add new tax credits for home solar panels and used EVs.
Renewed hope for renewables… In recent months, renewable companies’ earnings have been clouded by rising prices: the cost of key solar materials has nearly tripled from last January. But solar demand’s still strong, and this bill could boost green investment:
- Sunny: Shares of solar companies like Enphase Energy, First Solar, Maxeon Solar, Sunrun, Sunnova, SunPower, and SolarEdge all surged yesterday.
It’s a historic step for climate investment… But still just the beginning. Experts say the new climate bill could pass as early as next week, if it gets the support from all 50 Democratic Senators (wild-cards like Kyrsten Sinema could kill the deal). It’ll still take years for America to overhaul its old energy infrastructure, but certain companies and consumers may benefit right away.