SE Engr. Solar Policy, Economics, and Sustainability 3

Question 1

Under the Inflation Reduction Act structure, a project meeting prevailing wage and apprenticeship requirements multiplies its base ITC rate by what factor?

Accepted Answer

5

Answer

The 6% base credit is multiplied by five, to 30%, when the labor requirements are met.

Question 2

How much does the domestic content bonus generally add to an IRA-era ITC for a project that meets the labor requirements?

Accepted Answer

10 percentage points

Answer

The domestic content adder is 10 percentage points for projects meeting the labor requirements, or 2 points otherwise.

Question 3

What does IRA 'transferability' allow a solar project owner to do?

Accepted Answer

Sell eligible tax credits to an unrelated taxpayer for cash

Answer

Section 6418 lets eligible taxpayers sell credits to unrelated buyers, usually at a discount.

Question 4

Which entity can typically use IRA 'elective (direct) pay' to receive solar credits as a cash payment?

Accepted Answer

A municipal utility or other tax-exempt entity

Answer

Direct pay is mainly for tax-exempt entities such as governments, tribes, and nonprofits.

Question 5

Under a typical state renewable portfolio standard (RPS), what do compliance entities usually retire to show compliance?

Accepted Answer

Renewable energy certificates (RECs)

Answer

Each REC represents 1 MWh of renewable generation, and utilities retire RECs to meet RPS obligations.

SE Engr. - Solar Energy Engineering Certification Practice Test

SE Engr. - Solar Energy Engineering Certification Practice Test

SE Engr. Solar Policy, Economics, and Sustainability 3