The U.S. Inflation Reduction Act

9th August 2022

We salute the U.S. Senate for its bipartisan Inflation Reduction Act and clean energy package which is going to stimulate manufacturing and retail of sustainable energy products.

Altelium provides insurance and warranties for the battery market, whether in vehicles or in energy storage. We understand the huge emissions savings which sustainable energy delivers compared with fossil fuel energy.

However, we are also aware of the need to be mindful of the carbon impact of battery manufacture and operation. We’re proud of the role insurance plays in extending the life of batteries, by understanding how they degrade and how they should be operated to extend their lives.

In the 21st century ‘active insurance’ like ours, where we play an ongoing part in protecting assets and mitigating risk, will be essential. We provide insured warranties for batteries and operational and construction all risk insurance for battery energy assets.

The Inflation Reduction Act includes billions of dollars to fund a network of EV charging stations across the States, as part of the Bipartisan Infrastructure Package, which will provide a huge boost to the EV car market both domestic and commercial.

Consequently, fleet managers, in particular, will want to know how to manage and maintain their fleets to keep their batteries healthy and maximise their fleet’s residual value. This is where an active warranty programme, from a battery insurance specialist like Altelium will pay dividends.

The Inflation Reduction Act has now made battery energy storage (BESS) far more the accessible with an investment tax credit (ITC) for standalone energy storage. This is particularly important given that BESS is essential in support of EV charging stations, intermittent renewable energy generation and a more decentralised electricity grid.

This could reduce the capital cost of sustainable energy product purchases by 30% which is a huge boost to the market. Those looking to enter the market will be pleased to know there is customised insurance ready to support and help protect their investment, from the earliest build phase to mature, well managed and maintained operations.

We hope that with this bold and important step from the US government, more businesses will consider battery energy and its associated products, and we look forward to helping the world accelerate towards a sustainable energy future.