California Congressman Introduces MICROGRID Act

Rep. Jimmy Panetta, D-Calif., has introduced the Making Imperiled Communities Resistant to Outages with Generation that is Resilient, Islandable, and Distributed (MICROGRID) Act.  

The legislation incentivizes the expansion and deployment of microgrids which provide backup power – independent from the larger energy grid – during emergencies. As extreme weather events – such as wildfires – become increasingly common, microgrids can mitigate the impacts of grid outages and public safety power shutoffs on communities using cleaner energy sources.

The bill creates a 30% tax credit for a qualifying microgrid property through 2025, phasing down to 10% by 2028 and sunsetting in 2029 to incentivize the expansion and deployment of microgrids at the local level. The credit can be taken by governments and nonprofits as a direct payment, helping communities take advantage of the credit.

“Many California communities are frequently experiencing power failures and shutoffs due to wildfires, public safety power shutdowns and other emergencies driven by extreme weather events,” says Panetta.  “My MICROGRID Act would provide accessible tax credits for local governments to build and deploy microgrids, offering a cleaner energy alternative to fossil fuel generators that are independent of our energy grid. Expanding and deploying microgrids can harness clean energy sources, keep our homes and critical infrastructure connected when the larger grid fails, and lead to reliable and consistent electricity for our homes and safety for our communities.”