- Inflation Reduction Act flips the script of green economy; until recently economic growth took primacy over energy transition; now they go hand in hand
- Credit Suisse cites clean energy as safe, smart, government-backed bet for conservative investors; moreover, it is expected to perform regardless of the macro environment
- As a company empowering homeowners and businesses to achieve Net-Zero, GeoSolar well positioned to capitalize on this growing green momentum
The days of assuming that we need economic growth before we can start tackling climate change are gone. Once an afterthought dependent on the upward trajectory of the broader economy, now climate change is gearing up to drive growth. Against this backdrop, it appears that the times for companies like GeoSolar Technologies (“GST”), a Colorado-based climate technology company, may have never been better.
According to the recent Credit Suisse report, the Inflation Reduction Act, which is expected to spend $374 billion on climate change, will have a monumental impact across industries in the next ten years and beyond, potentially shaping the broader direction of the American economy (https://ibn.fm/RSogz). However, as impressive as it is, it may not be all there is.
Despite this already colossal spending that’s expected, what may go unnoticed is that the IRA could spend twice as much since the most important provisions, including incentives for electric vehicles and zero-carbon electricity, are uncapped tax credits. This means there’s no budget for them or limit – as long as a project meets the terms, the government will award the tax credits. As a result, Credit Suisse believes that significantly more money will flow into green-energy industries. The bank predicts that the demand for tax credits will be so high that the IRA’s total spending will likely be more than $800 billion. Since public expenditure tends to catalyze private investment, this federal backing could spur total climate spending across the economy to as much as $1.7 trillion over the next decade.
This game-changing legislation flips the narrative from risk mitigation to opportunity capture, amalgamating economic growth with the energy transition. But high point of this new push toward green spending is that it appears to be recession-proof. Even if the United States goes into recession in 2023, it is believed that the role of the IRA will only grow in importance, making “betting on clean energy one of the most certain economic trends of the next few years.”
Climate change and Net-Zero are the global talking point the world over. “The fact is net zero is going to fundamentally change our lives,” energy expert and Australian Energy Market Commission chairwoman Anna Collyer said during the AFR Energy and Climate Summit (https://ibn.fm/9rnk0). “Within our children’s lifetimes, petrol cars and gas stoves – like answering machines and street directories – will become things of the past,” she continued. Electrification of the commercial sector might be vital for decarbonization, but for homes, the impact will be transformation, she argued.
The US’s role in this global fight against climate change appears to be at an inflection point – it is expected to evolve more in the next four years than it has in the past four decades. With this strong federal support, Credit Suisse believes that the US is “poised to become the world’s leading energy provider,” potentially producing the world’s cheapest solar and wind by 2029.
It seems that there has never been a better time to be in the green energy space – and the industry outlook is even rosier. Against this backdrop of the blossoming US green sector, GeoSolar appears poised for growth as a company offering technology that enables homeowners and businesses to achieve Net-Zero by revolutionizing how they generate and consume power. Tapping into the power of the earth and sun, the Company’s patent pending SmartGreen™ Home system uses solar panels and geothermal ground loops to distribute that energy to power cooling and heating systems, run home appliances, and charge electric vehicles. With this solution that blends solar power, geothermal, and other clean energy technologies into one integrated system, GeoSolar seems well-positioned to capitalize on the colossal momentum the industry is building today.
For more information, visit the company’s website at www.GeoSolarPlus.com.
NOTE TO INVESTORS: The latest news and updates relating to GeoSolar Technologies are available in the company’s newsroom at https://ibn.fm/GST
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