The Alaska Impact of the Inflation Reduction Act, Two Years Later
This Op-Ed was originally published in the Anchorage Daily News on August 14, 2024. It is authored by our board members, Gavin Dixon and Griffin Plush, who share their insights on the impact of the Inflation Reduction Act on Alaska over the past two years.
Two years ago this week, the Inflation Reduction Act (IRA) was signed, marking a generational investment in energy and climate infrastructure. This funding is now beginning to flow into Alaska, benefitting our homes and communities in myriad ways. With numerous new tax credit programs, financing tools, and grant funding opportunities, the IRA has created so many funding opportunities that people are beginning to take advantage of all across our great state.
Alaskans are starting to benefit from the IRA through a wide variety of programs, including rebates on new efficient appliances such as stoves, dryers, heat pumps and water heaters; tax credits for home energy efficiency improvements; and expanded tax benefits for installing renewable energy and battery energy storage on homes. These new programs help keep money in Alaskans’ pockets, encourage job creation and investment in our homes and businesses, and help reduce energy costs. These direct energy and financial improvements for individuals will be even more important to help mitigate the negative impacts of escalating energy costs on the Railbelt due to the natural gas crisis in Cook Inlet.
Beyond the individual tax credits, the IRA has also established Direct Pay, a system for non-taxpaying organizations such as nonprofits, Tribes, local governments and utility cooperatives to benefit from these clean energy tax incentives for the first time. By enabling creative financing options like this, we are starting to see movement toward clean energy across sectors.
New financing and grant opportunities have also been secured for Alaskans, with many millions more to come. The Alaska Energy Authority and Tanana Chiefs Conference and their partners Alaska Housing Finance Corporation and the Alaska Native Tribal Health Consortium together received more than $120 million from the IRA’s Solar for All Program, which will support rooftop solar, community solar programs and utility-scale solar for communities all around Alaska primarily benefiting low-income residents and Tribes over the next five years. Golden Valley Electric Association received $100 million from the IRA’s Powering Affordable Clean Energy to develop grid infrastructure that will improve reliability and enable the development of large-scale solar in Nenana. Southeast Conference received nearly $40 million from the IRA’s Climate Pollution Reduction Grant Program to install thousands of residential heat pumps all over southeast Alaska to reduce energy use and heating costs for residents. These infrastructure projects will reduce energy costs, create thousands of good-paying jobs, and help to improve the resilience of our electrical systems across Alaska. That’s to say nothing of IRA investments in fisheries research and protection, forest fire mitigation programs, transportation infrastructure and much more.
Alaskans are excited to see the investments of the IRA propel Alaska’s transition towards more sustainable, local and clean energy. We look forward to communities and families around the state fully leveraging the IRA. We are thankful to the federal and state agencies working to implement these programs correctly, and to the elected officials, like Sen. Lisa Murkowski and Rep. Mary Peltola, who continue to support these smart investments that build the framework for growing our state’s clean energy economy, fighting the impacts of a changing climate, and building a brighter, more resilient future for us all.
– Gavin Dixon and Griffin Plush volunteer together as board members of The Alaska Center; they are both lifelong Alaskans who work professionally with energy projects across the state.
