Renewable Energy Incentives at Risk as Senate Considers Legislation
Amidst growing concerns over the future of renewable energy incentives, stakeholders in Kansas are voicing the potential impacts of proposed federal legislation. As the Senate prepares to amend House-passed legislation that aligns with former President Donald Trump’s energy agenda, the debate intensifies over the fate of tax benefits crucial to the alternative energy sector.
For over a century, Bowersock Mills & Power Co. in Lawrence has harnessed the Kansas River’s power, with recent expansions made possible through federal renewable energy tax incentives. According to CEO Sarah Hill-Nelson, these incentives were vital to tripling the plant’s energy output. She expressed concerns that current legislative proposals threatening these benefits could hinder future expansion plans and the broader alternative energy industry.
Impact on Kansas Economy
The Business Council for Sustainable Energy and the Clean Energy Business Network have warned that the House budget bill could lead to increased energy costs and job losses in Kansas. The proposed legislation is expected to raise household energy bills by $210 annually by 2030 and $670 by 2035, while potentially eliminating nearly 10,000 jobs in the state over the next decade.
Lisa Jacobson, president of the Business Council for Sustainable Energy, emphasized the importance of stable tax policies for long-term energy project planning. “As we face an era of unprecedented energy demand growth, now is not the time to disrupt the market by making unnecessary changes to the tax structure,” she stated.
The Fate of Solar Energy
The potential phasing out of a 30% tax credit for residential solar installations has solar companies on edge. Mark Horst of King Solar in Hutchinson highlighted the risk to his business, indicating that removing this credit could force him to reduce his workforce by 60%. Similarly, Malcolm Proudfit of Good Energy Solutions noted that the tax credit significantly influences customers’ decisions to invest in solar energy systems.
Under the Senate’s draft proposal, the solar tax credit would end six months after the bill’s passage, leaving businesses uncertain about future investments.
Challenges for Utility Providers
The Kansas Corporation Commission’s utilities director, Justin Grady, pointed out that changes to clean energy tax credits could affect projects like Evergy’s proposed Kansas Sky solar facility. Without these credits, the economics of renewable energy projects could shift unfavorably, impacting power purchase agreements.
Joseph Astrab from the Citizens’ Utility Ratepayer Board warned that revisions in federal incentives could force utilities to rethink their energy generation strategies, affecting the balance between affordability, reliability, and energy source diversity.
Business and Community Responses
Laura Thompson of FlowEnergy, which aids property owners in managing energy use, reported a business slowdown due to the uncertainty surrounding tax credits. Dorothy Barnett, of the Climate and Energy Project, noted the potential loss of tax credits for energy-efficient building methods, highlighting personal impacts such as the $1,200 tax credit for her daughter’s new Energy Star roof.
With ongoing debates in Congress, many in the renewable energy sector are calling for a clear and gradual transition away from existing incentives to avoid sudden disruptions.
Original Story at lawrencekstimes.com