- The recently passed Inflation Reduction Act includes a collection of policies designed to increase sustainable energy production through the use of tax incentives.
- While this policy vastly increases the financial viability of many projects, engineers still need a way to integrate these savings with their design and optimize around savings related to the incentives program.
- Xendee platform now offers tools to apply these incentives directly to the technologies during the modeling process.
SAN DIEGO, CALIFORNIA, October 20, 2022: Xendee, a provider of renewable project and microgrid design and decision support software, has launched a series of new features that integrate the latest tax incentives from the new Inflation Reduction Act directly into its platform. This allows engineers to quickly integrate the benefits of these policies with their projects and see the effects on overall costs or determine the capabilities associated with increased expenditure. This will mean that many more projects can become financially viable and will vastly increase investment in microgrids, especially as outages become more common and energy prices continue to rise.
“These new features allow engineers to proactively design and optimize their energy project based on the real value streams and incentives that are available,” said Zack Pecenak, Lead Engineer at Xendee. “Instead of just adding these savings in later as a line item, this allows Xendee to plan and optimize the system around the new tax incentives. This creates both a more accurate view of project financials and allows Xendee to optimize the projects in light of the incentives. For instance, the applied tax credit may change which technologies are chosen or how they are sized or placed.”
To implement tax savings in the Xendee platform, users are now provided with an extended widget for each applicable technology. From here, users can elect to implement the tax savings and even select the incentive they would like to apply. For instance, the Solar Investment Tax Credit (ITC) is a 30% credit that can be applied to both residential and commercial solar PV installations. This is a flat rate and had been set to reduce to a mere 6% before the passing of this bill. Alternatively, engineers can also elect to utilize the Production Tax Credit, wherein they will be paid tax incentives based on their production. Xendee allows the modeling of both systems as well as the capabilities to analyze each and determine which solution would be more beneficial to the project.
Additionally, the new features also apply to the modeling of green hydrogen within Xendee. Modeling hydrogen production, storage, and use within Xendee already exists as a module; however, engineers are now able to take advantage of and associate the $3 tax credit per kilogram of green hydrogen produced, making this opportunity attractive to several facilities.
“Xendee’s new tax incentive features give decision makers an opportunity to consider sustainable technologies that may have earlier been financially unattractive or completely out of the scope of the project,” said Michael Stadler, co-founder and CTO of Xendee. “For instance, with the incentives for hydrogen production, a facility that never would have considered it might become a net exporter of hydrogen or even use it to power their own fleet of vehicles.”
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About Xendee Corporation
Xendee is the new standard in distributed energy system design and operation. The award winning platform integrates the microgrid design process into one piece of software and allows users to rapidly validate projects of any size, optimize designs, optimize investments, and operate microgrids in realtime to reach their full potential. Xendee’s software can model up to 25 different DER technologies and calculates the optimal techno-economic solution for each site individually to meet organizational goals. These goals can include reducing costs, cutting CO2 emissions, increasing resilience, or a combination of all three. Learn more about the clean energy platform or take your first steps towards net-zero carbon and reducing your scope 1 & 2 emissions by setting up a call with us at xendee.com/demo.