With the Inflation Reduction Act expected to be passed and signed, investors could look to solar-related ETFs to capitalize on increased support for the clean energy industry.

“We are sitting on the precipice of what could be the most impactful climate legislation of our lifetimes,” SunRun CEO Mary Powell told Globe Live Media Finance Live. “We are really excited about this. We really see it as a fundamental acceleration of this customer-led revolution towards a much more sustainable, independent, resilient and affordable energy system for Americans.”

The Reducing Inflation Act comes with about $370 billion in energy security and climate spending, including a 30% tax credit to install residential solar panels that runs through December 31, 2034, and those who install systems of solar batteries could also qualify for a tax credit.

“Specifically, what this does is it just makes it even more affordable for those customers to go solar by offering a proposition that can lead to even greater savings for them,” Powell added. “At the same time, the backdrop here as well is that we’re seeing energy inflation that’s really quite remarkable. We’re seeing utility rates go up across the country. And those things are also conspiring for this to really be such a monumental time in this space to help customers quickly move to a cleaner, more cost-effective solution.”

The bill passed the Senate on Sunday on a 50-50 party line split with Vice President Kamala Harris casting the tiebreaking vote. According to research provider Rhodium, the bill could help contribute to a 31% to 44% reduction in greenhouse gas emissions to the 2005 level by 2030.

“With the passage of the Reduce Inflation Act in the Senate, solar and storage companies are one step closer to having the business certainty they need to make long-term investments that decarbonize the electricity grid and create millions of new career opportunities in cities and towns across the country,” said Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association (SEIA), according to PV Magazine.

“The solar industry has set a goal of accounting for 30% of all US electricity generation by 2030, and this legislation will be a catalyst in reaching that goal,” he added.

Investors who are interested in gaining exposure to the solar industry can look into solar sector-specific ETFs, such as the Invesco Solar ETF (NYSE Arca: TAN) and the Global X Solar ETF (RAYS).

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