UGE to benefit from US Climate BillUGE is my top pick to benefit from the US climate bill which is the largest climate bill in U.S.A. history.
The stock was up 22% today. The company put out a newsletter where it mentioned how it will benefit:
- 10-Year ITC Extension at 30% - the longest investment tax credit (ITC) extension in history, since first introduced by President Bush almost 20 years ago. Without this extension, the ITC was set to decline from 26% in 2022, to 22% in 2022, to 10% thereafter. We understand the ITC to also have bonus provisions for many of the low and moderate income communities in which we work.
- ITC for Standalone Storage - until now, battery storage was only eligible for the ITC if it was directly charged by solar. With this bill, standalone storage is also eligible for ITC. Recall that we’ve been busy developing such projects in Massachusetts and elsewhere.
- ITC for Interconnection Upgrades - a significant portion of the cost of solar projects is to pay for utilities to upgrade the grid so that the solar project can connect to it. Until now these upgrades were not eligible for the ITC; with this bill they will be.
- Credits to Grow US Manufacturing - while we have no plans to manufacture ourselves, there is substantial support to grow US solar supply chains, which we expect will directly lead to lower costs and quicker deliveries.