CFC, NRCO Share Updated IRA Opportunities and Considerations

With the signing of the Inflation Reduction Act (IRA), electric cooperatives now have significant opportunities to harness federal incentives to deploy clean energy technologies. CFC and National Renewables Cooperative Organization (NRCO) have published a primer for electric cooperative leaders to understand the various federal programs and how clean energy deployments could look in practice.

With the direct-pay incentive, the IRA has opened up direct access to the federal Investment Tax Credit and Production Tax Credit, creating new and substantial incentives for electric cooperative ownership. Cooperatives can analyze several factors in deciding the option best suited to their needs. These include economics, control, long-term value, staff development, local community impact, public relations and operations and maintenance. The direct-pay incentive includes a 10% bonus if certain objectives are achieved, such as domestic content in the product as well as locating the project in an “Energy Community” or a “Low-Income Community.” 

Electric cooperatives should also be aware of federal grants and loans through the U.S. Department of Agriculture. These programs include the Empowering Rural America program, the Powering Affordable Clean Energy program and the Rural Energy for America Program. These programs can be paired with the direct-pay incentives so that both will be applied to the total cost of the project.