This article was first published in Utility Dive on December 20, 2024.
The Inflation Reduction Act of 2022 ushered in significant opportunities for growth in the power industry, offering meaningful increases to tax credits to encourage the construction of green energy projects. To take advantage of these opportunities, owners must comply with various requirements of the IRA, including the prevailing wage and apprenticeship, or PWA, requirements, unless the project meets a limited exception for certain small facilities that produce clean energy under 1 MW.
The PWA requirements
The PWA requirements are designed to ensure that workers involved in qualifying green energy projects receive fair compensation and that a skilled workforce is cultivated through apprenticeship programs. The PWA requirements stipulate:
Payment of prevailing wages: All workers employed on the project — whether by the owner, a contractor or a subcontractor — must be paid at least the prevailing wage rates determined by the Department of Labor, which vary by location and type of work.
Click here to read the full article.