Hello, solar enthusiasts! Today, let’s take a deep dive into the vast potential of harnessing solar energy on Native American lands – a topic that’s been garnering considerable interest recently. It’s dialectically ironic; these lands hold 5% of the nation’s solar potential yet numerous Native American households still lack access to basic electricity.
Understanding the background is crucial to understanding why this is such a significant opportunity. Native American lands have, for long, been contributing to the United States’ energy mix, but the benefits have not been equally shared. When one dives into the history, it becomes apparent that solar companies have faced numerous obstacles when trying to set up solar projects.
The difficulty of accessing investment tax credits (ITCs) posed a notable hurdle for tribal solar projects. As sovereign entities, Native American tribes are not subject to federal income tax, making access to such incentives a cumbersome process. To circumvent this, ingenious strategies like the formation of for-profit, limited-purpose companies were adopted. The Navajo Tribal Utility Authority (NTUA), for instance, adopted this model for the development of its utility scale Kayenta solar plant.
The game-changer has been the US Inflation Reduction Act (IRA). Now, non-profit entities can directly receive tax credits, and a range of measures have been introduced to encourage the development of renewable energy projects. The tax incentives within the IRA can be ‘stacked’, potentially increasing the credit value of the ITC up to 70% of project cost!
The progress is palpable, evident in initiatives like the NTUA’s Red Mesa solar plant. Functionally as well, companies that traditionally focused on decommissioning coal-fired power plants are now seeing the massive opportunity in setting up utility scale solar projects on these lands.
Boosted by financial, technical, and educational support, an increasing number of tribes are venturing into energy products. Expertise and experience are stacking up, with companies like Solv Energy serving as critical links in the chain. They’ve worked on several solar installations on Native American land, the knowledge from which could be invaluable for solar companies aspiring to do the same.
Alongside the proliferation of utility scale solar projects, efforts are being made to provide off-grid solar arrays for the home. As a solar expert, I can assure you off-grid solar is prefect for rural areas where grid connection can be economically unfeasible. NTUA offers off-grid solar packages that replace the dependency on diesel generators. Solv Energy’s Skip the Grid campaign is another brilliant example, providing off grid solar to households and educating children about solar energy in the process.
This surge in solar adoption on Native America Lands is hinting towards a more inclusive transition towards renewable energy sources. This likely influx of solar energy projects on Native American lands heralds a fresh wind for the solar industry and solar companies who can partake in this revolution. For those considering solar panels for your home, this implies a more extensive range of options, potential tax benefits, and the satisfaction of contributing to a clean energy future.
In conclusion, the intersection of Native American lands and solar presents a unique and valuable opportunity for the solar industry. We can now look forward to positive changes, such as extended reach of solar, more job opportunities, and an inclusive clean energy transfer, led and owned by Native Americans, for the Native Americans. As these pioneering efforts continue to light up lives, the future of the solar industry seems bright indeed!
Original Articlehttps://pv-magazine-usa.com/2024/02/26/tribal-solar-on-the-rise/
