Impending Transitions to Clean Energy

Photo: GE Appliances

In recent years, the use of clean energy has grown significantly and it has become the leading source of new electricity generation in the United States as of 2023. While it may seem like there will be no issues in continuing to advance this technology and phase out other energy sources such as gas or coal, the rapid increase in energy demand in future years could present obstacles.

The Bad News

Even though millions of Americans have been buying clean energy technology, such as electric vehicles or stovetops, we still have a long way to go. According to a report released by Pace of Progress in November 2023, to reach Biden’s goal of reaching net zero emissions by 2050, we need to sell 1,207,000 heat pump water heaters, 4,564,000 induction stovetops, 7,156,000 solar roofs, and 14,940,000 EVs every year from 2024 to 2026. These are all almost double, if not triple the amount we would sell if we did business as usual.

Plus, the rapid rise in interest rates, resulting from actions by the Federal Reserve, substantially increased the cost of capital for all energy projects. Clean energy projects are more sensitive to interest rate increases than some other forms of power generation because they require significant upfront capital. Especially at a time when the American market can seem volatile, the cost of these projects can shift up for Americans to adopt into their own homes.

The Good News

The passing of the Inflation Reduction Act introduced many incentives for Americans to adopt these green technologies in their own homes. For example, you can be offered up to $840 in rebates for new electric appliances and up to $2,500 to pay for wiring. There are also incentives up to $7,500 per eligible EV provided by the IRA on top of local, state, and utility incentives, and up to $1,000 for EV chargers.

According to Sightline Climate, the IRA, along with state and local incentives, are expected to lower the costs of clean technologies by about 40%. At the moment, there has never been a better time to buy these cleaner alternatives. Plus, according to Doyne Farmer, the director of the complexity economics program at the Institute for New Economic Thinking at the Oxford Martin School, we are more on track than people realize, as exponential growth starts very small and then becomes very big.

How You Can Help

To further increase implementation and accelerate the transition to a sustainable future, we can:

1. Enhance Awareness and Education: 

Implement widespread campaigns to educate the public about the benefits of clean energy technologies and the incentives available under initiatives like the Inflation Reduction Act. By raising awareness about the financial savings, environmental advantages, and long-term sustainability benefits, more individuals may be encouraged to make the switch.

2. Expand Incentive Programs: 

Continuously evaluate and expand incentive programs such as rebates and tax credits to make clean energy technologies more accessible and affordable for a broader range of consumers. Increasing financial incentives not only helps offset the initial costs but also promotes economic growth within the clean energy sector.

If we keep pushing our elected officials to support decisions that align with these ideas, especially during an election year, we can help produce real change that's truly better for the planet. It's essential that we come together, collaborate across sectors, and prioritize the transition to clean energy to mitigate the impacts of climate change. Together, we can create a more sustainable future for generations to come.