Insights on Distributed Wind Energy Market Growth - Business

Renewable Energy Tax Credit and Distributed Wind Energy Association 's Recommendations

The U.S. Department of the Treasury Internal Revenue Service recently released a public communication from the Distributed Wind Energy Association in Norman , Oklahoma . The association represents the sector of the wind industry that designs , finances , manufactures , installs , and supports wind turbines in rural and industrial locations . Distributed wind energy systems are installed to offset utility power purchases and reduce energy costs , significantly reducing carbon emissions.

NREL studies have shown the vast potential for distributed wind energy , with millions of potential sites and economically viable capacity . The industry has seen advancements in technology and cost reductions , making small and medium wind systems more competitive . The recent Inflation Reduction Act has accelerated the industry 's recovery , creating domestic manufacturing jobs and boosting sales.

 The 10 % domestic manufacturing bonus is an important market stimulus that provides clear guidance on qualification procedures . However , the classification of towers for small and medium - sized wind systems as " structural " rather than a " manufactured product " presents a challenge.

DWEA points out that small and medium wind turbine manufacturers have components with domestic content exceeding 90 % . But the tower classification issue may hinder progress as purchasers of turbines may not qualify for the bonus due to the lack of 100 % American - made towers . DWEA suggests safe - harboring towers as " manufactured products " to support the industry 's growth.

Challenges and Recommendations for the Wind Energy Industry

The distributed wind industry faces challenges in tower classification that could impact its growth potential . The demand for steel in the industry is minimal compared to larger windfarm turbine manufacturers . Limited domestic tower manufacturers and overwhelming orders from other industries create supply chain issues . DWEA recommends including distributed wind towers up to 1 megawatt as " manufactured products " to align with the industry 's unique characteristics.

 DWEA urges the Treasury Department to consider their request to support American manufacturing and differentiate distributed wind towers from large - scale wind towers.

The association emphasizes that small and medium wind turbines consist of mostly American - made components and should qualify for incentives . By including distributed wind towers as " manufactured products , " the industry can thrive and contribute to Renewable energy goals.

Conclusion and Future Prospects

In conclusion , the Distributed Wind Energy Association advocates for favorable regulations that support the growth of the distributed wind industry . By addressing the tower classification issue and promoting American manufacturing , the industry can overcome challenges and thrive in the renewable energy sector . With the right policies in place , distributed wind energy systems can play a significant role in reducing carbon emissions and promoting sustainable energy practices.

The future of the wind energy industry looks promising , with advancements in technology and policy support driving growth . By working together to address key challenges and implement effective solutions , the industry can further expand and contribute to a more sustainable energy future.