Guidehouse Insights Explores How the Inflation Reduction Act Supports Energy Savings Performance Contracts and Energy as a Service Projects

ESCOs and other energy services providers should plan to take advantage of incentives

BOULDER, Colo., April 20, 2023 /PRNewswire/ -- A new report from Guidehouse Insights explores aspects of the Inflation Reduction Act (IRA) relevant to energy savings performance contracts (ESPC) and energy as a service (EaaS) projects and implications for market growth over the next decade.

The Inflation Reduction Act supports unprecedented investment in clean energy. According to a new report from Guidehouse Insights, energy services markets, specifically energy service companies and energy as a service providers, are expected to benefit significantly from the new regulation, leading to higher than anticipated revenues in the coming decade.

"The IRA provides a variety of incentives for energy efficiency, onsite renewable generation, and energy flexibility technologies in public and commercial buildings, including hard-to-decarbonize industries," says Krystal Maxwell, research director with Guidehouse Insights. "The act supports decarbonization markets through direct funding; tax credits, such as the Investment Tax Credit (ITC), Production Tax Credit (PTC), and the 179D tax deduction; and funding for broader market initiatives, such as development of emerging technologies and stretch codes."

Guidehouse Insights recommends educating customers about the impact of incentives on project economics; reinforcing the value of energy services contracts; bundling onsite renewables with energy efficiency measures; and considering expansion in other vertical markets, such as manufacturing and small and medium businesses, according to the report.

The report, The Inflation Reduction Act Supports ESPC and EaaS Markets, discusses aspects of the IRA relevant to ESPC and EaaS projects and considers implications for market growth over the next decade. It reviews critical questions that will impact market growth trajectory, such as the impact on customer sentiment, and new prevailing wage and apprenticeship requirements. Based on this analysis, the report presents two potential market outlook scenarios that stakeholders might see play out because of the IRA. An executive summary of the report is available for free download on the Guidehouse Insights website.

About Guidehouse Insights

Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today's rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.

About Guidehouse
Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has over 16,500 professionals in over 55 locations globally. Guidehouse is a Veritas Capital portfolio company, led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit www.guidehouse.com.

* The information contained in this press release concerning the report, The Inflation Reduction Act Supports ESPC and EaaS Markets, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.

For more information, contact:

Cecile Fradkin for Guidehouse
+1.646.941.9139
[email protected]

SOURCE Guidehouse Insights