The Inflation Reduction Act was enacted on August 16 by President Joe Biden, allocating billions of dollars to Americans wishing to improve their homes, companies, and vehicles.
And now it seems like every week businesses are announcing multi-billion dollar investments in sustainable energy and transportation in the United States.
Inflation Reduction Act’s Impact on Clean Energy Investment
But the proportion of promises coming from abroad is more significant than the velocity of the commitments.
According to one rule of the law, individuals who earn less than $150,000 annually are eligible for a $7,500 tax credit when they purchase an electric vehicle.
Additionally, it enables Americans to apply for a tax credit for heat pump installation in their houses.
The Inflation Reduction Act is providing $369 billion to renewable energy firms and initiatives around the nation.
And there is already cause for celebration for clean energy investors.
Companies that use renewable energy, like NextEra Energy Inc., have easily outperformed the S&P 500 in the months since the act was passed into law.
The law is contentious, as is any measure broad enough to profess to decarbonize 40% of the American economy during the following eight years.
But from the standpoint of investing, one thing is undeniable: History demonstrates that clean energy catalysts on this scale can provide investors with the opportunity to greatly increase their financial returns.
Perhaps you recall the 2009 stimulus package from President Barack Obama, which provided billions of dollars to clean energy businesses and “created Tesla as we know it,” according to Bloomberg.
Since then, Tesla Inc. shares have increased by approximately 10,000%, despite a recent decline.
Similar to Brookfield Renewable Partners LP, several renewable energy businesses that received loans or subsidies have generated returns of well over 1,000%.
Read more: Joe Biden Announces Intent To Seek Re-Election In 2024 Presidential Campaign
Offers of the Companies for Solar Investments
The potential rewards for solar investment are particularly alluring. America’s solar business grew by 2,50% in the years following the 2009 stimulus package, and Biden’s clean energy proposal is far larger than that.
The White House intends to help 7.5 million Americans install solar panels on their rooftops in 2023, which might present a significant opportunity for Qnetic and other businesses in the sector.
Qnetic develops cutting-edge power storage systems. that facilitates a painless and seamless transition for its clients to the electric grid.
According to Bloomberg, it might cost more than $28 trillion to decarbonize the world’s electricity infrastructure.
That’s significant for businesses trying to transition consumers to an electric-only lifestyle.
Read more: Another Round Of Stimulus Check Might Be On The Table Amid Continuous Rising Inflation
