With the passage of the Inflation Reduction Act (IRA) in late 2022, you might have questions about what this means for your business. After all, it’s a hefty piece of legislation with provisions related to everything from decreasing healthcare costs and funding the Internal Revenue Service, to boosting American manufacturing.
It also outlines new tax credits, guidelines and requirements about cutting carbon emissions through the use of clean energy — this includes the use of electric vehicles (EVs) and equipment, as well as alt-fuel vehicles and equipment.
This shift toward battery-powered vehicles and equipment isn’t new. In fact, organizations of every kind, like this transit bus company, have been integrating clean energy technology into their applications for years. But as support for this evolution grows and technology improves, it’s time to look at creative ways to power your fleet without relying on the grid.
Let’s take a closer look.
What is in the Inflation Reduction Act?
The Inflation Reduction Act of 2022 aims to give a competitive boost to the United States economy. Broadly, this covers a wide array of sectors and initiatives. What we’re most interested in is the impact the IRA will have on clean energy and power infrastructure.
Not only does this act impact electric vehicle and equipment charging, but it also impacts the U.S. power grid infrastructure as a whole.
Here’s what we’re keeping our eye on:
- The investment in the country’s power infrastructure, specifically our clean energy technology, with the goal of modernizing and protecting the grid while slashing greenhouse gas emissions by 2030
- The goal to build consumer EV demand and increase accessibility by dropping prices, which would also drop the price for commercial EVs
- The effort to bring the clean energy supply chain to the United States by requiring certain components (like batteries) to be either manufactured or assembled in the country
- The credits available to help businesses electrify their fleets
What this means for you
In summary, the government is putting funding toward improving clean energy technology. This includes giving businesses money back when they purchase qualifying electric vehicles and equipment.
The challenge with alternative-fuel vehicles — like EVs, hydrogen and other fuel cell-powered equipment — is fueling them. Whether you need off-the-grid electric power, hydrogen fuel stations or something else, the infrastructure likely isn’t in place where you need it. That’s where CK Power comes in. We’ll work with you to identify the best alternative-fuel option for you application and build a custom solution that fits your application’s requirements.
What alternative-fuel technology is available to support your charging and power infrastructure?
While demand for alternative-fuel equipment exists, realistic support and power options are still catching up — especially for the commercial space.
Fuel cell and alternative fuel (like hydrogen) vehicles have successfully arrived on the consumer market. But from a financial standpoint, a power perspective, and an infrastructure angle, these types of clean energy don’t make sense across a large-scale commercial operation. Especially not for more rugged applications.
This will likely change as this technology develops. Until then, using diesel and gaseous generators to charge electric vehicles and equipment is both the most practical and most cost-effective clean energy option. For some, this is where electrification stops making sense. Why would you replace your diesel engine with a battery that requires diesel fuel to charge? But one diesel genset can power a number of EVs, eliminate internal combustion engine (ICE) maintenance needs from your operation, put a deep cut on your emissions and provide much needed power separate from the grid.
How can you prepare now?
If you haven’t already started considering how electric and alt-fuel vehicles and equipment could fit into your operations, now is the time to start. Here are some questions to ask yourself as you evaluate your needs:
- What is your application? Do you need prime power? Are you backing up utility infrastructure? Do you need to charge your fleet of electric vehicles and equipment?
- How large is your operation? Building grid resiliency into a construction site is a different undertaking than supporting an electrical co-op or small town dealing with rolling blackouts or severe storms. It’s important to have an idea of the scale you’ll need.
- How will you fuel your power infrastructure? As discussed above, options include diesel and gaseous gensets, LP, HVO, or hydrogen. While diesel and gaseous gensets are the most practical choice for large-scale operations with high power needs, we can work with you to evaluate if an alternative fuel solution is right for your needs.
Bring your power infrastructure into the future
Getting your power infrastructure right is important. Navigating technology changes and staying compliant with evolving government regulations while doing so is critical.
When you work with CK Power, not only do you get cutting-edge power solutions, but you also get a team of smart, responsive technicians, engineers and professionals in your corner.
We can adapt an off-the-shelf offering to your needs, or we can custom engineer a solution from the ground up. Remote power, backup utility options, electric vehicle or equipment charging — whatever you need, we’re ready to get started. Are you?