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RE: Preserve Energy-Dominance Incentives for Distributed Wind

May 2025

Dear Members of Congress,

Domestic distributed wind energy operating where people live and work is an essential tool in a smart, comprehensive national energy strategy. The American Energy Tax Credits and incentives, including Direct Pay, the tech-neutral 48E, production-based 45Y, and the manufacturing 45X (as well as residential 25D) provisions, are enabling greater energy dominance and helping fight inflation by lowering energy costs for farmers, businesses, homeowners, public facilities and schools across the country.

Distributed wind  is helping thousands of rural and industrial users alike — and the potential for more affordable energy to be deployed is vast and much needed, given the country’s rapidly expanding energy needs. The Department of Energy estimated the potential for economic deployment of primarily rural distributed wind includes millions of sites, and exceptional gigawatt potential, on private lands, where, unlike large onshore and offshore wind farms, single or small groups of wind turbines of various sizes can be deployed to fit specific energy needs.

Distributed wind has many advantages – it can be more quickly deployed than large, centralized power plants, helping to “buy time” for broader expansion of utility-scale power, it can and is often combined with fossil fuels (and solar and storage) in hybrid systems, providing peak shaving and resiliency. Distributed wind systems are favored by farmers because they do not take prime farm land out of production.

And America leads in distributed wind technology. It already has high domestic content, and costs are coming down with more advanced technology. But our manufacturers need a market support runway in order to increase production volumes, build new factories, increase exports, and compete with China.

While wind energy has been in existence a long time, the distributed wind market segment is simply not yet mature, due to unfair international trade practices, unstable, inconsistent public policies, and other factors.  Our businesses and end users would be severely harmed, potentially closing, by any future disjointed or hasty policy decisions.  That would give China and others the upper hand in global energy manufacturing, export, and harm our technological leadership and innovation.

As Congress advances its tax agenda to strengthen the American economy, we respectfully urge you to consider the vital role energy and manufacturing incentives play in supporting the distributed wind industry’s ability to deliver substantial economic, energy, and security benefits to rural and industrial customers and the country at large.

We thank you for your work in ushering in a new era of American energy dominance, and we look forward to partnering in this shared endeavor.

Sincerely,

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