Renewable Energy Is Here to Stay: Inflation Reduction Act Provides Economic Support and Growth for the Sector

Vancouver, Kelowna, and Delta, British Columbia--(Newsfile Corp. - August 12, 2022) - Investorideas.com, a leading investor news resource covering solar and clean energy stocks, released today a special report, featuring solar energy company, SinglePoint, Inc. SING, on the growth of acquisitions and improved investor sentiment for the renewable energy sector following the news surrounding the Inflation Reduction Act.

Read the full news release here:
https://www.investorideas.com/news/2022/renewable-energy/08120Inflation-Reduction-Act.asp

In recent news, "The US Senate has just approved a bill which includes America's most significant investment in climate action. Alongside healthcare commitments, the Inflation Reduction Act allocates $369 billion to renewable energy and reducing greenhouse gas emissions. Experts at several analysis firms have estimated that it could cut emissions in the US by around 40 per cent by 2030."

President Joe Biden called the legislation the "largest investment ever in combating the existential crisis of climate change," praising it for "making the wealthiest corporations finally pay their fair share." It could bring the country close to Biden's goal of cutting emissions in half by the end of the decade.

Investors saw several companies that released their Q2 financials pre-climate bill reap the benefits of an emboldened investor attitude towards green energy stocks.

SolarEdge Technologies, Inc. a global leader in smart energy technology, recently announced its financial results for the second quarter ended June 30, 2022 on August 2nd.

"The growing demand for energy in general and clean energy in particular continued to drive top line growth this quarter resulting in record revenues in Europe and the United States," said Zvi Lando, Chief Executive Officer of SolarEdge. "While we continue to face growing supply chain challenges, some related to our rapid growth in an environment of component shortages, and macro-economic trends as a result of our global footprint, we continue to support our customers while building the infrastructure for sustainable growth."

SunPower Corp. a leading solar technology and energy services provider, released their financial results as well for the second quarter, ending July 3, 2022.

"There is a ubiquitous need for reliable electricity at an affordable price that isn't being met with our traditional energy sources," said Peter Faricy, SunPower CEO. "With our strategic growth plan, investment in world-class customer experience and robust pipeline, SunPower is well positioned to capture the strong resulting demand for solar and storage. This quarter we added a record number of customers, including an all-time high for new homes installs, and accumulated a backlog that we expect to set us up for high growth in the second half of the year."

SunPower Corporation's earnings beat estimates as it increased 4.9% since its earnings release on Aug 2, 2022. The company reported second-quarter 2022 adjusted earnings of 3 cents per share. The bottom line marked a deterioration from the year-ago quarter's earnings of 7 cents per share.

The Zacks Consensus Estimate for second-quarter earnings was a penny. Excluding one-time adjustments, the company reported a GAAP loss of 24 cents per share against the prior-year quarter's earnings of 46 cents per share.

SinglePoint, Inc. SING, an acquisition-focused solar energy and sustainable solutions provider, recently announced the acquisition of Frontline Power Solutions, a Multi-State Licensed Energy Services Company (ESCO).

Frontline Power Solutions (FPS) is a comprehensive energy service Company with the ability to operate in deregulated markets across the country. Frontline Power is licensed in nine (9) states and has applied for and is awaiting final approval in twelve (12) additional states. Frontline provides Energy Supply Agreements to all sizes of commercial, industrial, and institutional properties. In addition to supplying direct agreements, FPS also lends its expertise to its clients to help reduce energy consumption, streamline energy portfolios, and offer other options to lower energy costs.

The strategic acquisition provides SinglePoint with access to an extensive portfolio of clients while giving those FPS clients reciprocal access to one of the nation's leading solar power solutions companies and best-in-class customer service.

Wil Ralston, CEO of SinglePoint, said, "Frontline Power Solutions is a great addition to SinglePoint. Frontline will round out our service offerings by providing tremendous opportunities in the deregulated energy markets. Through Energy Service Agreements or assistance with installing a client's solar system, SinglePoint can now assist thousands of commercial clients in their solar transition."

John Holmes, Founder & CEO of FPS, said, "Our focus has been supplying commercial energy contracts to large and small commercial, industrial, institutional, and property management firms. We facilitate substantial reductions in energy consumption and spending while streamlining logistical management of their energy portfolios. By joining SinglePoint, our two companies benefit from economies of scale and monetizing opportunities more efficiently and quickly."

The FPS purchase is just the latest in SinglePoint's acquisition strategy, bringing a growing collection of solar providers and energy solutions under one corporate umbrella. SinglePoint has acquired six (6) subsidiaries, including EnergyWyze, BOX Pure Air, Direct Solar America, Ecodaptive, Boston Solar, and Frontline Power Solutions.

There are currently 26 US states that offer deregulated power options which are expected to reach $9 Billion in annual industry revenues.

This follows the company's earlier announcement that its subsidiary, The Boston Solar Company LLC, expects to see substantial increases in residential solar energy projects due to the Inflation Reduction Act which passed on Sunday, August 7, 2022. The climate change and tax package passed by the Senate on Sunday will provide $370 billion in funding for clean energy, including extending and increasing lucrative tax credits for solar energy, enabling residential homeowners to claim up to 30% of the value of a solar project as a tax credit.

The legislation provides a 30% tax credit for installing residential solar panels until December 31, 2034. The tax credit would decline to 26% for solar panels put into service after December 31, 2032, and before January1, 2034. Additionally, homeowners installing solar battery systems with at least three kilowatt-hours of capacity qualify for the tax credit. The 30% credit will be retroactive to anyone who installed their system from the beginning of 2022. The tax credit also applies to energy storage, whether it is co-located or installed as standalone energy storage. This enables consumers to retrofit an array of batteries with a wide range of solar infrastructure, significantly increasing immediate revenue opportunities for SinglePoint through its majority-owned subsidiary, Boston Solar.

Wil Ralston, CEO of SinglePoint, said, "SinglePoint is capable of exponentially increasing revenue due to this legislation passing. We will benefit from the largest clean energy act passed in the US in ways we haven't even thought of yet. Tax credits for solar projects have always been crucial in a property owner's decision to install solar panels."

Ralston continued, "In addition to the increase in demand and EV subsidies, the extension of tax credits provides additional benefits for the buyer and increases the potential market for solar energy projects because it increases affordability. Without question, this is huge for green living everywhere."

Corey Lambrecht, President and Chief Financial Officer of SinglePoint, remarked, "With federal government support in the form of tax credits for solar energy projects and direct federal funding of air purification projects in schools, SinglePoint is poised to benefit from more contracts going forward."

Plug Power Inc., a leading provider of turnkey hydrogen solutions for the global green hydrogen economy, announced its 2022 second quarter results.

In a recent article from MarketWatch, "shares of Plug Power Inc. pulled a U-turn to trade sharply higher Wednesday, as investors and analysts appeared to embrace the hydrogen and fuel cell company's glowing praise of the Inflation Reduction Act (IRA), over the company's disappointing second-quarter results."

Plug Chief Executive Andrew Marsh said on a post-earnings conference call with analysts that the IRA provides a "trifecta effect," as it's good for the climate, for jobs and for national security. And it's great for the company.

"With the passage of the Act, we expect a boom for our electrolyzer and green hydrogen business," Marsh said, according to a FactSet transcript. "All applications that use gray hydrogen [produced from fossil fuels] today, such as fertilizer manufacturing, will now be able to buy green hydrogen at a competitive price with gray."

The Inflation Reduction Act is expected to pass through the House in short order which we can expect will embolden investors as well the companies themselves, in regards to growth and acquisitions, even as the economy maintains a recession. While there has been a dark shadow cast on the stock market over the past seven months we are starting to see a ray of sunshine for solar, wind and renewable energies.

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