Since its passage in 2022, the Inflation Reduction Act (IRA) has provided manufacturing industries with a strong push toward renewable energy and domestic production. However, for metal roll forming companies, this legislation has presented a few challenges. While the IRA offers direct incentives for solar panels and other renewable components, it doesn’t fully cover crucial support systems—like the roll-formed metal used in solar racking systems.
If you’re looking to partner with a metal roll former that’s adaptable, forward-thinking, and ready to tackle the complexities of today’s manufacturing landscape, read on.
Here, we discuss the current IRA landscape, how a knowledgeable metal roll former can support your projects, and why collaboration is key to overcoming challenges and maximizing potential benefits.
Understanding the IRA’s Impact on Metal Roll Forming
The IRA set ambitious goals for renewable energy production, with particular emphasis on U.S. solar manufacturing. However, it hasn’t fully caught up to the needs of companies providing critical support systems like solar racking structures. While the IRA offers tax credits for solar panels, it doesn’t cover structural racking systems, which allow panels to follow the sun for maximum efficiency.
At Dahlstrom, we’re actively working to expand awareness of the essential role these support systems play in renewable energy, alongside many industry advocates pushing for better coverage. For our customers involved in clean energy projects, this is an area where collaboration can make a difference as we work toward creating a stronger renewable energy infrastructure.
Two IRA Sections That Could Benefit Your Projects
While the IRA may not directly cover every metal roll forming project, there are a couple of provisions that could bring indirect benefits. Here’s how these sections may impact your projects:
- 45X Tax Credit: Supporting Sustainable Steel Production
The 45X credit awards $0.87 per kilogram of steel used in qualifying clean energy projects. While this is aimed more at steel suppliers than roll formers, it signals an overall shift toward sustainable practices that could benefit your supply chain. If sustainable steel sources are important to your project, we can help you explore how this credit might apply to your materials, potentially impacting your bottom line. - 48C Advanced Manufacturing Credit for Solar Facilities
The 48C credit offers up to 30% for facility expansions tied to clean energy production. For projects focused on solar infrastructure, this could mean additional savings if you’re working with a partner who optimizes for these credits. Although the first rounds of applications are closed, more opportunities may arise in the coming years, so staying informed on future openings can help make the most of this credit.
The Power of Collaboration: Partnering for Success
Despite the IRA’s limitations, here are ways a reputable metal roll forming company can work with you to find efficiencies and cost-saving strategies that align with your renewable energy goals. Here are some ways we can collaborate for maximum benefit.
1. Advocating for Better Industry Representation
Working together can strengthen the case for metal roll-formed products in renewable energy projects. Many industry advocates are pushing for changes to the IRA, emphasizing the role of components like solar racking systems. Partnering with a reputable roll former connects you to a network that supports fairer representation in clean energy incentives, which can ultimately benefit your projects.
2. Designing Solutions for Clean Energy Projects
If your focus is on solar and clean energy infrastructure, we can develop roll-formed products that meet the latest standards and align with IRA-supported projects. This can streamline your production costs and keep your projects competitive. Through options like resource pooling, we can create solutions that maximize savings and improve efficiency.
3. Indirectly Leveraging Renewable Credits
Working with IRA-qualified vendors for solar racking systems allows you to access critical components at a reduced cost while maintaining quality. If we partner on these projects, you gain both Dahlstrom’s expertise and access to our network, giving you an edge in a rapidly evolving market.
Staying Informed Together on IRA Opportunities
The IRA continues to evolve, with new opportunities expected through 2029 and a gradual phase-out through 2032. As part of our commitment to helping our partners, we stay up-to-date on upcoming IRA rounds, tax credits, and regulatory shifts that might impact your projects.
- Tracking New IRA Rounds
We monitor changes in IRA eligibility and future credit rounds. If your projects involve renewable energy infrastructure, we’ll work with you to be ready when new opportunities open, so you don’t miss a beat. - Planning for Shifts in Eligibility and Expiration Dates
With the IRA scheduled to phase out starting in 2029, we help our partners plan now to maximize current credits while keeping an eye on long-term flexibility. Knowing these timelines will help you stay prepared and adaptable, with our team ready to support you every step of the way.
Moving Forward Together
The Inflation Reduction Act may not be perfect for the metal roll forming industry, but by working together, we can create new opportunities and overcome these challenges. Whether through advocacy, collaborative design, or simply staying informed, we’re here to support you in navigating the post-IRA landscape.
If you’re interested in learning more about how we can help you grow and adapt in this changing environment, contact us today.
Together, we can turn challenges into opportunities and build a stronger, more sustainable manufacturing future.
Topics: Inflation Reduction Act
