Advanced Energy Perspectives

On August 29, the Massachusetts Department of Public Utilities (the Department) issued a pivotal order that could shape the state’s future energy landscape. This ruling marks a significant, though incremental, step toward modernizing the Commonwealth’s distribution grid, offering a preliminary roadmap to guide Massachusetts on its journey toward a more advanced energy infrastructure.

Over the course of 2024, Advanced Energy United has been tracking and often engaging on, clean building policy developments across the country. As market and technology trends evolve at breakneck pace, it’s up to states to either harness the momentum to deliver for consumers, or to let outdated policies stymie economic growth and spiral energy costs out of control.

In this blog, we’ve rounded up several emerging trends related to building electrification worth watching in legislatures, at Public Utility Commissions, and among executive offices as they confront these issues in real time.

On August 16, 2022, President Biden signed into law the Inflation Reduction Act (IRA), the largest-ever investment in clean energy and climate action. Two years later, the landmark legislation has proven to be the pivotal catalyst it was intended to be, unleashing historic investments in advanced energy solutions, revitalizing domestic manufacturing, stimulating economic growth, creating jobs, and lowering energy costs for households and businesses across the country. In celebration, we’re marking this anniversary with a look at five indicators that the IRA is already transforming the U.S. economy, with much more on the horizon. 

Illinois has made major progress towards a clean energy future over the last several years, but its journey to clean, affordable heat is just beginning. The state’s landmark energy bill, the 2021 Clean and Equitable Jobs Act (CEJA), was a major victory for decarbonizing the electric grid, though it did not directly address or create new policies aimed at decarbonizing heating systems. On this front, more work is needed to fully achieve 100% clean across the electric and building sectors. The good news is that key regulators, thought leaders, and decision makers in Illinois have already gotten started on grappling with this complex topic.  

Last month, Illinois became the first state in the Midwest, and one of the few states outside the coasts, to establish a state-run incentive program for medium- and heavy-duty (MHD) electric vehicles (EV) that are part of a fleet, such as commercial trucks, transit, and school buses. The primary purpose of the legislation is to support fleet owners and operators who wish to go all electric; although MHD EVs show strong market growth, their adoption has been slow in part due to their high up-front cost. EVs represent less than 1% of new MHDV sales currently and incentives for vehicle purchases are proven to help increase EV adoption. Rebates and tax incentives for light-duty vehicle (LDV) EVs have captured a larger share of the LDV market overall, accounting for roughly 10% of new LDV sales. It’s no surprise that most MHD EVs are sold in states offering a purchase incentive program.