Inflation Reduction Act: What energy and utilities leaders need to know

C-suite executives have different roles to play when influencing the future of green energy

The United States signed the Inflation Reduction Act (IRA) in 2022, one of the biggest investments towards clean energy in the country’s history. The IRA sets the stage for energy and utility companies to invest in sustainable infrastructure operations.

C-suite decision makers have an opportunity to influence the future of clean energy by accelerating their climate initiatives, accessing tax breaks associated with renewable energy generation, and increasing the capacity of solar plants and wind farms.

With $400 billion of federal funding being dedicated to clean energy, the IRA aims to facilitate a 40 percent reduction in economy-wide greenhouse gas emissions by 2030.

Here are some of the ways that C-suite leaders can work together to make the most of IRA benefits.

• Chief Executive Officer: Support leaders in understanding the impact of the IRA on their areas of responsibility and how accessing funds fits into enterprise strategy
• Tax executives: Improve short- and long-term goals by understanding IRA eligibility requirements
• Chief Financial Officer: Analyze and measure how carbon reduction affects overall costs and technology requirements
• Chief Operating Officer: Assess company readiness to scale projects or production to capture increased demand generated from the IRA
• Chief Risk Officer and Chief Sustainability Officer: Monitor competitive landscape to determine if targets should be more aggressive or match others in the energy and utility sector
• Chief Human Resources Officer: Optimize tax credit benefits through IRA-compliant hiring decisions and staffing

Executives should make the most of IRA incentives quickly to qualify for credits and grants. Capgemini is here to help businesses navigate the intricacies of the IRA fund by integrating holistic strategies that maximize benefits, provide guidance throughout the application process, and create connections between the right partners and ecosystems.

Learn how C-suite executives can fully-maximize IRA benefits, and how leaders can establish frameworks that will enable them to take advantage of IRA incentives.