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A rendering of a hydrogen energy storage gas tank for clean electricity solar and wind turbine facility.3d rendering

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One of the most generous tax credits in Biden’s landmark climate bill, the Inflation Reduction Act, is the production tax credit for making hydrogen, which is worth as much as $100 billion.

When hydrogen is used in a fuel cell to generate electricity, water is the only by-product. Generating energy from hydrogen this way does not create carbon dioxide, one of the primary greenhouse gases that causes global warming. Also, hydrogen is a vehicle for storing energy over long periods of time.

Hydrogen is already produced at scale for use in making fertilizer and in the petrochemical industry. But more recently, hydrogen is being seen as a way to decarbonize industries like maritime shipping, long-haul trucking, steel-making, industrial heating, and aerospace. Also, its capacity as an effective way of storing energy makes it attractive for renewable energy sources, like wind and solar, which are inherently intermittent — wind turbines make energy when the wind blows, and solar panels make energy when the sun shines.

However, the only way hydrogen can be a viable solution for reducing carbon emissions is if it can be produced without releasing greenhouse gas emissions. By and large, that’s not the case today.

The proposed tax credit, 45V, is meant to turbocharge the production of low-emissions hydrogen. It’s now up to the Treasury to figure out how to implement it — and that’s the tricky part. The debate centers around how best to write rules that make sure that the hydrogen produced is actually clean so that it can be used as a climate-mitigation tool.

“The IRA’s section 45V production tax credit is the most generous clean hydrogen subsidy in the world,” Jesse Jenkins, professor of macro-scale energy systems at Princeton University, told CNBC.

“But without proper implementation, 45V could backfire, wasting a tremendous opportunity for the United States to become a global leader in new clean industries and causing a significant increase in domestic emissions that imperil U.S. climate goals.”

An Hydrogen prototype GenH2 truck of the Daimler Truck Holding AG arrives at his destination in Berlin, on September 26, 2023, after completing 1047kms with one liquid hydrogen full tank.

John Macdougall | Afp | Getty Images

The adjudication of the hydrogen tax credit has become about more than just the hydrogen tax credit, too. It could also set important precedents for how the government decides electricity used from the grid is really “clean.”

“The hydrogen debate is at its surface level about defining clean hydrogen production, but more fundamentally it’s about what an individual actor needs to do to credibly claim that their electricity consumption is clean,” Wilson Ricks, who works in Jenkins’ Zero-carbon Energy systems Research and Optimization research lab at Princeton, told CNBC.

“Hydrogen is the first time the US government has been forced to directly address the question of verifying clean electricity inputs, so whatever framework it endorses here could set a very strong example for other emissions accounting systems going forward,” Ricks said.

There’s a lot of money on the line and while the details of the debate get a bit wonky, the debate itself represents a larger and more ideological fault line about how the United States should built its clean economy: One side says we should focus on emissions reductions from the outset, while the other says the foundation should be built and scaled quickly and perfected later.

“We have now entered a new phase in the clean energy transition, whereby new solutions and operational paradigms are necessary to accommodate an increasingly renewable grid and catalyze decarbonization. The clean hydrogen tax credits are a major opportunity, and juncture, to start shaping that new phase in the right way,” Rachel Fakhry, the policy director for emerging technologies at the Natural Resources Defense Council, told CNBC.

How clean is ‘clean,’ and how is that decided?

Hydrogen is the simplest element and the most abundant substance in the universe, but hydrogen atoms do not exist on their own on Earth. Hydrogen atoms are generally stuck to other atoms — like for example in water, H2O — and so creating sources of pure hydrogen on Earth requires energy to break those molecular bonds.

In the energy business, people refer to hydrogen by an array of colors to as shorthand for how it was produced. The different methods produce varying amounts of CO2.

The amount of the hydrogen tax credit, which is available for 10 years, depends on the emissions generated in making hydrogen. If hydrogen is produced without releasing any carbon emissions, the tax credit is maxed out at $3 per kilogram of hydrogen. The tax credit scales down proportionally based on the quantity of emissions released.

One way of making hydrogen is with a process called electrolysis, when electricity is passed through a substance to force a chemical change — in this case, splitting H2O into hydrogen and oxygen. To make hydrogen with electrolysis, hydrogen producers may use electricity from the larger energy grid. The electricity on the grid comes from many sources, some clean, like a solar farm, and some dirty, like from a coal-fired plant. On the electric grid, all that electricity gets mixed together.

So the debate over the 45V tax credit has become acutely focused on accounting for how the electricity hydrogen producers use from the grid is accounted for. If the energy used to make hydrogen is not actually clean, then hydrogen is not really a climate solution.

Some hydrogen industry stakeholders want the Treasury to implement strict electricity accounting standards to maximize the likelihood that the tax credits only go to hydrogen that is produced with the least possible amount of emissions.

Others want the Treasury to implement very flexible standards so the hydrogen industry can grow as fast as possible as quickly as possible, then focus on emissions reduction once it’s scaled.

Energy used from the grid to power electrolysis to make clean, “green hydrogen” must meet three accounting standards in order to ensure that it is actually produced in a clean way, according to Jenkins from Princeton. These standards have become known as the “three pillars:”

  • Additionality. The electricity has to come from newly-built sources of clean electricity, meaning it is additional clean energy being added to the grid for the purpose of making hydrogen.
  • Regional deliverability. The clean electricity added to the grid has to be able to physically travel from the additional clean energy source to the electrolysis facility, meaning it is regionally deliverable electricity.
  • Hourly matching. The additional and deliverable clean electricity that powers electrolyzers has to be accounted for on an hourly basis. If the electricity is accounted for on an annual basis, then electrolyzers used to generate hydrogen could be running when additional clean energy is not regionally available — when the wind isn’t blowing and the sun isn’t shining, for example. That means those electrolyzers could be powered by fossil fuels.

“We call these requirements ‘pillars’ because all three are structurally critical: remove any one and the whole ‘clean’ hydrogen house comes tumbling down,” Jenkins told CNBC.

Peer-reviewed modeling work by our group and follow-up studies by other academics have shown that simply plugging electrolyzers into the grid would produce hydrogen with embodied emissions twice as bad as ‘grey’ hydrogen produced from fossil methane. In fact, even an electrolyzer getting just 2% of its electricity from natural gas plants or less than 1% from coal would violate the strict statutory emissions requirements to claim the $3 per kilogram subsidy,” Jenkins said.

Taking sides

Some companies in the hydrogen industry, including electrolyzer producer Electric Hydrogen, clean energy company Intersect Power, industrial heat and power company Rondo, and grid carbon data provider Singularity have publicly pleaded for the Treasury to adopt these “three pillars” of strict electricity accounting for the 45V hydrogen tax credit.

Digital generated image of wind turbines, solar panels and Hydrogen containers standing on landscape against blue sky.

Andriy Onufriyenko | Moment | Getty Images

Air Products, an 80-year old company that sells gases and chemicals for industrial uses, also supports the three pillars of additionality, regional deliverability and hourly matching for the 45V tax credits. Air Products operates in about 50 countries around the globe, has over 200,000 customers, over 110 production facilities around the globe for hydrogen, and already has over 700 miles of dedicated hydrogen pipelines.

“We’ve been producing, distributing, dispensing hydrogen for over 60 years,” Eric Guter, a vice president of hydrogen production at Air Products, told CNBC in a video interview at the end of August.

“If we don’t deliver on the emissions reduction, we will lose the confidence of society in hydrogen and the energy transition. And as a long-term provider of hydrogen, it’s important to us that we get it right and preserve the integrity of the energy transition and the hydrogen industry.”

Josef Kallo, founder and chief executive officer of H2FLY, beside the HY4 liquid hydrogen powered electric aircraft at Maribor airport in Slovenia, on Thursday, Sept. 7, 2023. The aircraft, developed by H2FLY and partners, uses liquid hydrogen to power a hydrogen-electric fuel cell system.

Bloomberg | Bloomberg | Getty Images

Air Products already has two projects under construction that will be compliant with the three-pillars approach. Air Products is part owner of the NEOM Green Hydrogen Company, which is currently building a plant at Oxagon, Saudi Arabia, and which will be three pillars complaint. It’s also part owner of a mega-scale renewable-power-to-hydrogen project in Wilbarger County, Texas.

The European Union will need to import hydrogen, and has already decided to institute the “three pillars” in its hydrogen accounting, Guter told CNBC. So Air Products wants hydrogen produced in the United States to meet international standards.

“Otherwise our products won’t qualify or they will be taxed at the EU border for imports,” Guter said. “We’re talking about a global liftoff, not just U.S. liftoff, of the hydrogen market.”

On the other side of the debate, utility company and energy giant NextEra wants the Treasury to accept annual — as opposed to hourly — matching RECs as sufficiently specific.

“Starting with annual matching would boost green hydrogen investment and lead to greater overall decarbonization potential, allowing the industry to develop the first wave of hydrogen projects and build industry knowledge. If an hourly matching is enacted too early, it will limit U.S. green hydrogen investment, production and the country’s ability to lower emissions, and stifle innovation,” Phil Musser, vice president of federal government affairs at NextEra Energy, told CNBC in a written statement from.   

So, too, does the Clean Hydrogen Future Coalition, which is a trade group representing a diversity of stakeholders from BP to Duke Energy, Exxon Mobile, General Electric, Siemens Energy, American Clean Power, Shell and more. The Clean Hydrogen Future Coalition also says that no additionality should be required for companies looking to produce clean hydrogen, meaning companies do not have to be responsible for putting “additional” clean energy on the grid to get access to the tax credit.

“We’re not suggesting that we should do this indefinitely,” Shannon Angielski, president of the Clean Hydrogen Future Coalition, told CNBC in a video interview at the end of August. “Rather, let the industry start to make investments in that full ecosystem, send signals throughout that supply chain to make investments, and enable an industry to get seeded with the tax credits, and then over time, become more restrictive.”

The Clean Hydrogen Future Coalition proposes becoming more restrictive in those electricity accounting standards starting in 2030. The electricity accounting systems for monitoring electricity usage on a more granular level is not robust and standardized enough on a federal level, Angielski said, for hourly matching electricity accounting to be required.

But technology does exist to allow hourly matching, Wenbo Shi, the CEO of Singularity, told CNBC. His company makes that technology.

“Hourly and even sub-hourly clean energy matching is not only technologically feasible, but it is already being implemented and used by many. The barrier to adoption is not technology, but policy,” Shi told CNBC.

There are also barriers to getting additional sources of clean energy on the electric grid, Angielski told CNBC. For example, interconnection queues, which are the lines power generators have to wait on to apply to get new sources of clean energy connected to the grid, are years long and make the additionality requirement a barrier for the hydrogen industry.

“What we don’t want to do is wait to be able to actually start investing in low-carbon hydrogen,” Angielski said.

But Ricks doesn’t think there needs to be such a rush.

“The ‘order of operations’ for the energy transition has always been a subject of debate in the policy world: should we use our resources to push rapid near-term decarbonization, or instead support scale-up of nascent technologies that we think we’ll need in the future? Supporters of lax rules for hydrogen subsidies have sought to frame the debate in this way, but in this case it is a false choice,” Ricks told CNBC. “The hydrogen subsidies are large enough to support scale-up even with strict rules, and the absence of these rules would likely drive significant excess emissions for decades — hardly a near-term impact.”

Fakhry from the NRDC says it’s very possible that the IRA is going to incentivize more hydrogen than needed for the clean energy transition, especially depending on how the Treasury dictates the rules.

“It’s really hard to say if there will be excess or not. What we can say for sure is if the rules are very, very lax and hydrogen production can happen anywhere without any guardrails, then yes, we will have a lot of hydrogen production that will go to fairly bad end uses,” Fakhry told CNBC.

How Biden's climate plan could steal business from Europe

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Facing pressure, Trump scales back tariffs for US automakers

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Facing pressure, Trump scales back tariffs for US automakers

Donald Trump signed two executive orders today that walked back parts of tariffs he previously imposed on US automakers ahead of a rally in Michigan to mark his first 100 days in office.

The Wall Street Journal first reported today in an exclusive that Trump was “expected to soften the impact of his automotive tariffs, preventing duties on foreign-made cars from stacking on top of other tariffs and easing some levies on car parts.”

Trump signed an executive order making sure the 25% tariffs on vehicles and certain auto parts won’t stack on top of existing aluminum, steel, or Canada and Mexico tariffs. He also gave automakers a credit to help blunt the impact of the 25% duties on imported parts that go into US-built cars.

Trump’s backpedal comes after weeks of meeting with automaker executives, and a week after a coalition that included GM, Toyota, Volkswagen, and Hyundai sent a letter urging him to drop tariffs on foreign auto parts due to land in May.

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American Automotive Policy Council (AAPC) president Matt Blunt today said in response to the executive orders, “American Automakers Ford, GM, and Stellantis appreciate the administration’s clarification that tariffs will not be layered on top of the existing Section 232 tariffs on autos and auto parts. Applying multiple tariffs to the same product or part was a significant concern for American automakers, and we are glad to see this addressed. We will review the details of the executive order closely to assess how effectively it will mitigate the impact of tariffs on American automakers, our domestic supply chains and ultimately American consumers.” The AAPC represents Ford, GM, and Stellantis. 

Electrek’s Take

The 25% auto tariffs implemented under Section 232 of the Trade Expansion Act aren’t going anywhere, and most economists say that tariffs will raise car prices and slow auto sales. This White House Fact Sheet is titled, “President Donald J. Trump Incentivizes Domestic Automobile Production.” Where’s the incentive? US automakers are just getting hit with the stick once instead of twice, and they’re thanking Trump for it.

The carrot that worked as an incentive was Biden’s Inflation Reduction Act, along with the stability that came with it. All this whiplash is terrible for the US and global economy.

Read more: Killing IRA EV tax credits will ruin US EV and battery industries – Princeton study


Now is a great time to begin your solar journey so your system is installed in time for those longer sunny days. If you want to make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20 to 30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.

Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here. –trusted affiliate partner

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Tesla Powerwall 3 is disrupting the solar inverter market

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Tesla Powerwall 3 is disrupting the solar inverter market

New data suggests that the Tesla Powerwall 3 is significantly disrupting the US solar inverter market.

The home battery pack’s integrated inverter is changing the game.

Tesla acquired its solar business when it bought SolarCity in a controversial deal due to Musk being a large shareholder of both Tesla and SolarCity, and Musk’s cousin led the latter.

The automaker kept the SolarCity operations going for a few years. In fact, it continued until after Tesla shareholders sued Musk over the acquisition, and Musk defended himself by claiming that SolarCity had become an integral part of Tesla.

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Shortly after he won the lawsuit, Tesla virtually stopped all operations that came from its SolarCity acquisition, which primarily consisted of residential solar financing and installations.

Tesla even stopped reporting solar deployment. The company’s energy business now consists almost entirely of Powerwall and Megapack deployments.

However, the launch of the Powerwall 3 has indirectly brought Tesla back into the solar business, as the home battery pack features an inverter that works for both solar and storage applications.

EnergySage is a company that matches solar installers with potential buyers, and as a result, it has a wealth of interesting data about the solar industry in the US. Today, it released its Spring 2025 Marketplace report.

In the report, EnergySage revealed that Tesla became the second-most quoted inverter brand in the second half of last year:

Tesla became the most quoted battery brand in H2 2024, occupying 63% of Marketplace share nationwide. Because the Powerwall 3 includes an integrated inverter, Tesla also became the second-most quoted inverter brand. With batteries increasingly being added to solar systems—the national battery attachment rate jumped to 45% in H2 2024, an all-time high—Tesla’s growth was a key driver of the low storage and solar prices seen on EnergySage. In 2025, we are examining whether brand backlash and equipment shortages will affect Tesla’s Marketplace share.

This is also a byproduct of the increased popularity of energy storage systems when deploying new solar systems.

In big solar markets like California and Texas, the majority of residential solar quotes are attached to batteries, and Tesla is not the top quoted brand, thanks to Powerwall 3:

Powerwall was already the preferred home battery pack for many homeowners, and the fact that it now includes a solar inverter has made it even more attractive, as most home energy storage systems in the US are being deployed along with rooftop solar.

The Powerwall 3’s solar inverter integration is pushing solar plus storage costs down quite a bit.

The popularity of the Powerwall 3 has particularly hurt Enphase, a leader in solar inverter. It had 73% of the US market in 2022, and now it is down to 53%.

Despite Tesla driving prices down, Powerwall 3 is not the cheapest battery pack available. Panasonic and EG4 batteries were both priced lower on a per kWh basis than Tesla’s in the second half of 2024, but Tesla won on cost when also replacing the solar inverter.

However, it’s not all good news from Tesla. EnergySage also recently reported an increase in customers requesting alternatives to Powerwalls in 2025, partly due to Elon Musk’s increasing controversy.

If you’re interested in installing solar panels and/or batteries for your home, we recommend using EnergySage. You will be able to get quotes without any hassle and only talk to someone when you are ready to move forward. Within minutes, you can get on the path to producing your own power with solar and battery storage, including with Powerwall.

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BLUETTI’s paying to help you go green – plus, a new option for going further

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BLUETTI’s paying to help you go green – plus, a new option for going further

Here’s something most people don’t know: In the US, switching to solar and battery-based energy can actually save you money on taxes. And it’s not a future promise – it’s happening right now. Under the US Residential Clean Energy Credit, BLUETTI’s eligible solar systems and home batteries qualify for a 30% federal tax credit through 2032. That means with the right model, like the AC500 Home Battery Backup, you’re not only saving on electricity, you could also get a portion of your purchase back during tax season.

Meanwhile, gas generators are quietly costing more

There’s a reason so many people have relied on gas generators: they’re familiar, accessible, and have served us well for years. But as fuel prices continue to rise and usage becomes more frequent, the hidden costs of gas generators are quietly piling up:

  • Ongoing fuel expenses, especially during summer or storm seasons
  • Routine maintenance and part replacements
  • Stricter regulations in certain areas limiting usage times
  • Noise complaints and environmental concerns

It’s not about shaming these tools—it’s about recognizing when the cost-to-benefit ratio starts to shift.

Not ready to give up your generator? Start small with the BLUETTI AC60

The move to clean energy doesn’t have to be all or nothing. Sometimes, the right first step is simply trying a lightweight alternative, like the AC60 Portable Power Station (Pioneer 50).

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  • Compact and powerful: 600W output (1000W surge) covers most outdoor needs
  • Historically affordable: Only $269 after subsidy
  • Fast charging: 80% charge within an hour
  • IP65-rated for water and dust resistance – ideal for outdoor life
  • Backed by a 6-year warranty, cutting down on waste and replacement costs
  • Expandable to 2,015Wh capacity for powering phones, laptops, and more

Whether you’re into camping, road trips, or just want something for light backup at home, portable power stations like AC60 are an easy way to test the waters – no big commitment needed.

Need something stronger? Apex 300 is built to last

For those looking to level up their home battery backup or long-term savings, the Apex 300 offers a durable, future-forward alternative. With second-gen EV-grade batteries rated for 6,000+ cycles, this power station can last up to 17 years – nearly twice as long as typical models.

More reasons why Apex 300 stands out: 

  • Ultra-efficient 20W AC idle drain extends fridge runtime by up to 24 hours and boosts CPAP usage by 2.5x compared to typical units
  • Built-in 120V/240V dual output with 12,000W bypass that powers 99% of home appliances, even a Tesla EV
  • 2-year savings sprint when paired with one Solar X 4K Charge Controller for a massive 6400W solar input
  • Whisper-quiet at 40dB, no fumes, no fuel
  • Time-of-use savings made easy: Easily schedule and monitor energy usage with a user-friendly app and a clear, intuitive LED screen
  • Expandable ecosystem: Add extra B300K batteries or a smart 700W Hub D1 to grow your setup as your needs evolve, from whole-home backup to off-grid RV power

This isn’t about replacing your gas generator overnight. It’s about introducing a better Plan B that’s cleaner, quieter, and built for the long haul.

Thinking about a cleaner future? BLUETTI is offering a little help

In honor of Earth Day, BLUETTI has launched a new Clean Energy Incentive Program. Gas generator owners around the world can submit basic info about their devices and select a clean power product to receive an exclusive subsidy.

The compact AC60 and other select models are already available at subsidized prices through BLUETTI’s Clean Energy Incentive Program – a practical step designed to support a smoother, more affordable transition to greener living.

Meanwhile, early access to the all-new Apex 300 Portable Power Station is now open through May 19, ahead of its official launch on May 20 on Indiegogo.

Going green isn’t about rushing

It’s about small, thoughtful choices that build toward something better – for your home, your wallet, and the planet. BLUETTI believes real change happens step by step, just like the LAFF (Light An African Family) Initiative. By walking the same path as those in need, the team can better understand and manage which solutions will most effectively help families who need affordable, sustainable energy.

So even if your gas generator still works just fine, it might be worth looking at a smarter backup. The future doesn’t have to be all-or-nothing. It can start with one quiet step with BLUETTI’s solutions, and this simple step could lead to a brighter, more sustainable future for everyone.

About BLUETTI

BLUETTI is a dedicated advocate for sustainability, integrating ESG principles throughout product design and corporate initiatives. Through impactful projects like LAAF (Light An African Family), BLUETTI provides affordable, sustainable energy solutions to communities across Africa. By partnering with Leave No Trace, a 501(c)(3) nonprofit, BLUETTI supports responsible outdoor recreation through clean energy solutions that minimize environmental footprints. This blend of craftsmanship, reliability, and a focus on real-world needs is what makes BLUETTI trusted in over 110 countries and regions.

Follow BLUETTI on Twitter/X here and on Facebook here.

All photos: BLUETTI

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