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Impact of Investment Tax Credit on Interconnection Costs
This report analyzes how a provision in the Inflation Reduction Act (IRA) allowing the Investment Tax Credit (ITC) to be applied to interconnection costs could improve the financial viability of onshore wind and solar projects in the United States. By examining data from five regional grids, the authors find that a 30 percent ITC could have bridged the cost gap for approximately 22 GW of withdrawn projects and 15 GW of active projects, potentially enabling a volume of deployment exceeding the 2023 record of 31 GW.
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Document type: Report
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