(Bloomberg) -- The head of solar equipment maker Enphase Energy Inc. said eliminating the clean-energy incentives in President Joe Biden’s signature climate legislation would be bad for the US economy.
Former US President Donald Trump has promised to end what he has called the “Green New Scam” on the campaign trail, a reference to Biden’s climate initiatives. However, a full repeal of the Inflation Reduction Act, which provides hundreds of billions of dollars in tax credits and other incentives for clean energy projects, would require approval by Congress, where it’s supported by Democrats and some Republicans.
“It’s a good thing,” Enphase Chief Executive Officer Badri Kothandaraman said of the IRA incentives in an interview late Tuesday. “It’s creating jobs and its bringing back manufacturing.”
The company now ships two-thirds of its solar inverter equipment from US factories and will start making batteries in the country to take advantage of the tax incentives offered through the IRA, Kothandaraman said.
“It is not logical for that to stop,” he said. “I don’t think they are going to recommend things that will kill jobs in America.”
Enphase said it sees a net benefit from the IRA of $38 million to $41 million during the fourth quarter, based on estimated shipments of 1.3 million units of US-made inverters. The company’s shares fell more than 12% after regular trading on Tuesday, as its forecast for fourth-quarter revenue disappointed and it missed earnings estimates for the three months through September due to weak demand in Europe.
--With assistance from Ari Natter.
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