Leaders call on Congress to include green energy in the COVID 19 relief. They claim that the pandemic will result in long-term damage to the renewable energy industry. Industries that specialize in renewable energy are likely to perform poorly due to this COVID pandemic if they don’t get support. Just as the pandemic has hit other industries, renewable energy is no exception. It is experiencing delays, disruptions in the supply chain, and constraints in the tax equity market.
According to a recent analysis, 18% of workers in the clean energy department are jobless. Unemployment has led to severe challenges in the sector as the job has gone down due to the pandemic. To relieve such issues, these companies want Congress to formulate a direct pay strategy. Such strategies include a cash grant to aid in the industry’s production of tax credits. However, the workers will also benefit from the programs by improving their standards of living. The credits are for electricity generation using wind and solar resources.
These companies suggest that the reduction in tax equity supply is essential. Hence, investors are likely to provide immediate cash flow to the developers to boost renewable energy projects. Investors will also invest their money into projects in exchange for tax credits. With this, renewable energy companies will benefit from such projects.
In the COVID 19 pandemic, the energy-related industries are out in the relief priority programs. Therefore, there has been no funding for renewable energy industries. These industries aren’t in the budget of $3 trillion relief fund for coronavirus, which Congress approved since the beginning of the pandemic. Lack of funding from Congress has led to the deterioration of renewable energy. Hence, much attention is vital at these rough times where money is necessary.
A statement from the Environmental Defense Fund stated that businesses are using policies to advocate for their demands and environmental goals. In response to the concern about funding, the companies should advocate for their plans to air their grievances. Congress should also set an example to business during this pandemic.
Renewable energy should be in the front line of getting relief for the COVID 19, as they play an essential role in the economy. Giving the industries some funds will help improve their productivity; hence everything will run effectively. However, with the latest technology, almost every sector benefits from renewable energy sources since it’s economical. Therefore, these industries should receive the necessary attention.