Mark W. Turley, MBA, leads solar market development for Alexandria Industries and is owner of Projected Energy LLC. He has 45 years of experience in helping manufacturing companies navigate the business landscape and over 20 years specializing in the renewable energy market.

1. What is your experience in renewable energy policy or legislation?

I have been studying U.S. renewable policy for more than 20 years as they pertain both to the market in general and manufacturing. Since the passage of IRA 2022, I have been working with manufacturers and consultants to better understand the legislation as it relates to manufacturing operations. I’ve been directly involved in processing four submittals under section 48C of IRA 2022 for capital investments projects directly related to adding and/or improving manufacturing facilities doing work within the renewable energy market.

2. In your opinion, what are the most notable trends in alternative and renewable energy generation over the last 5 years?

Over the past five years we have seen a major push to drive costs down through manufacturing efficiency improvements, technology gains and supply chain enhancements. The recent passage of IRA 2022 has stimulated domestic manufacturing demands thus pushing up interest levels for domestic manufacturing of all kinds.

3. How is the IRA different than previous government policies or incentives?

IRA 2022 allocates approximately $369 billion for energy security and climate change programs over the next decade covering tax credits for renewable energy projects, electric vehicles and energy-efficient home improvements. While there have been incentives for these in the past, the scale and scope of investment in IRA 2022 are unprecedented.

For manufacturers specifically, IRA 2022 marks a comprehensive and ambitious approach to addressing climate change that goes beyond previous policies or incentives and supports industries working in the climate, energy and renewables sectors. It has succeeded in stabilizing the renewable energy market by extending the Investment Tax Credit out far enough to give renewable energy project teams assurances that tax credits will be available. IRA 2022 also adds specificity to the qualifying process eliminating grey areas.

4. What value does the requirement for domestic content bring to the U.S. manufacturing industry?

Prior to today, many manufacturers in the U.S. were experiencing a downturn in work. This requirement for domestic content is highly valuable and will ensure that our manufacturing facilities can stay afloat, continue to hire and continue to produce the products needed for the industry. Often, especially in the renewable energy market, companies will source from overseas manufacturers simply because of the large price difference. Many times, this is possible because of unequal situations simply due to unfair trade practices. With IRA 2022, we are rebalancing the market in favor of our domestic manufacturers.

5. Is this going to create additional bureaucracies or red tape for consumers or organizations trying to take advantage of these programs?

Of course, we would expect that any legislation of this size and complexity will add administrative challenges, but likely more so for businesses than consumers. I believe one of the goals of IRA 2022 is to be as specific as possible, therefore eliminating potential bureaucratic issues. But it is still too early to determine if the writing of the legislation will truly accomplish this goal. In my experience of creating submittals under section 48C of IRA 2022 for capital investments projects we have already seen situations where the language requires more clarity in order to properly identify what projects qualify for credits.

6. What limitations does the IRA 2022 currently have that can hinder the value it was intended to bring?

IRA 2022 has the potential to bring significant benefits to manufacturers, but limitations in the form of clarity of language, effective implementation, bipartisan support, and public awareness are all crucial for it to be successful.

7. How will the increased demand for renewable energy impact other industries?

The demands on manufacturing will certainly increase as companies look to domestic manufacturing partners for renewable projects. As manufacturers take on these new projects their capacity will become tighter and tighter. This, in turn, may cause delays in production, rising costs, part shortages and more. Capacity may continue to be impacted by labor as well, considering that layoffs due to pandemic slowdown have not been fully resolved. Without a streamlined supply chain, this could impact and bottleneck other industries from renewables to automotive to consumer products.

8. What over-the-horizon renewable technologies or innovations need more attention, in your opinion? Why?

Energy grid reliability and overall capabilities appear to be one of the major hurdles for continued growth for the renewable market. For the renewable market to grow to its potential, we need to modernize grid technology and also encourage more investment and incentives.

9. Can you describe the state of the American renewables sector on 10-15 years?

No one knows what exact technological advances will be made over the next 10-15 years, but assuming there will be significant progress in technology, I can see consistent double-digit year-on-year growth for renewables as long as manufacturing and supply chains can keep up with the necessary rate of market expansion.

For the past 5 years the renewable market has experienced a remarkable growth trend while manufacturing has been in a flat growth pattern. Hopefully IRA 2022 can help support domestic manufacturing, which in turn will then support strong renewable energy growth.

10. How will the increased demand for renewable energy impact other industries?

The demands on manufacturing will certainly increase as companies look to domestic manufacturing partners for renewable projects. As manufacturers take on these new projects their capacity will become tighter and tighter. This, in turn, may cause delays in production, rising costs, part shortages and more. Capacity may continue to be impacted by labor as well, considering that layoffs due to pandemic slowdown have not been fully resolved. Without a streamlined supply chain, this could impact and bottleneck other industries from renewables to automotive to consumer products.