Microgrid Knowledge started selecting an individual of the yr in 2019, however we now have but to call a person, as a substitute making the award conceptual relatively than private, a conference Time journal generally makes use of. Last yr, for instance, we selected the house microgrid and earlier than that we chosen the state of California.
![Panetta](https://microgridknowledge.com/wp-content/uploads/2021/06/Congressman-Jimmy-Panetta-CA-20-Headshot-2-Copy-200x300.jpeg)
Congressman Jimmy Panetta, creator of the Microgrid Act
This yr is totally different as a result of one particular person stands out whose actions might considerably drive microgrid adoption. That individual is Californian Congressman Jimmy Panetta (D-Carmel Valley).
Panetta is the creator of laws with the acronym MICROGRID, which suggests Making Imperiled Communities Resistant to Outages with Generation that’s Resilient, Islandable and Distributed.
While different lawmakers have launched payments vital to microgrids, Panetta’s work stands out as a result of the most necessary ingredient of the MICROGRID Act — a 30% funding tax credit score for microgrid controllers — was included into the Build Back Better Act, which is a key piece of President Joe Biden’s agenda. Build Back Better has handed the House and at this writing is only one vote quick of approval by the Senate.
Why is the microgrid tax credit score so necessary? One solely has to look to the photo voltaic business. Solar grew 10,000% and created a whole bunch of 1000’s of jobs after its funding tax credit score grew to become regulation in 2006, in response to the Solar Energy Industries Association.
Tax credit as local weather change weapons
Panetta, who serves on the House Committee on Ways and Means, defined that local weather leaders in Congress are pinpointing clear power tax credit as an alternative choice to broad efforts to struggle local weather change, such as a clear power customary or carbon tax. Both mechanisms face crippling opposition.
“It’s been up to us on Ways and Means to ensure that there are these tax incentives, be it for e-bikes, for e-buses, for e-cars and yes even microgrids,” Panetta mentioned, talking at Microgrid California in October. “The tax code is an instrumental part of the Build Back Better plan, the infrastructure plan, and how we approach climate change at this point.”
Build Back Better additionally creates or extends tax credit for sources usually included inside microgrids, such as photo voltaic, power storage and electrical automobiles, as properly as a newcomer, linear mills.
Microgrid grants, particularly on the state degree, even have helped spur the expertise. But Panetta sees tax credit as higher capable of “open the aperture” to make microgrids reasonably priced for a broad vary of organizations, on this case not solely companies, but additionally authorities and non-profit organizations.
Panetta came across microgrids whereas speaking to constituents on the central coast of California who confronted wild-fire associated energy outages.
“Unfortunately, it was because of the effects of climate change that these people then, fortunately, had conversations with me and brought me the idea to support microgrids,” he mentioned.
Although the Build Back Better invoice is at the end line, it’s unclear that it’s going to make it over as a result of of opposition by Sen. Joe Manchin (D-WV). In any case, Congressman Panetta has elevated dialogue of the microgrid tax credit score and helped spur widespread assist, growing its possibilities of turning into regulation, if not this time, then one other.
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Microgrid Business Models and Value Chains
The new power business is working to categorize the varied varieties of microgrids and enterprise fashions. The main purpose is to attenuate microgrid system price and funding. To study extra about microgrid enterprise modes and worth chains obtain this white paper.
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A persuasive advocate
For this work, Microgrid Knowledge names Congressman Jimmy Panetta Microgrid Person of the Year 2021.
Panetta additionally has served as a persuasive advocate for microgrids in public boards. We invite you to observe his keynote speech at Microgrid California and a panel dialogue the place he was interviewed by Think Microgrid’s Executive Director, Cameron Brooks.
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