What is the one-megawatt exception for prevailing wage requirements

What is the one-megawatt exception for prevailing wage requirements

The one-megawatt exception is a provision under the Inflation Reduction Act that allows certain small clean energy facilities to qualify for increased tax credits without meeting the prevailing wage and apprenticeship requirements. Specifically, facilities with a maximum net output of less than one megawatt (as measured in alternating current) are exempt from these requirements and can receive the increased credit amount without adhering to the prevailing wage and apprenticeship rules. This exception is particularly beneficial for smaller-scale projects, such as rooftop or onsite solar installations, by reducing regulatory compliance burdens and costs associated with wage and apprenticeship obligations.

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