News

Jul 01, 2023

"Smart glass" is coming to a building near you

Illustration: Sarah Grillo/Axios Among the Inflation Reduction Act's

Illustration: Sarah Grillo/Axios

Among the Inflation Reduction Act's little-noticed yet potentially game-changing provisions: a big incentive for "smart glass," which can make buildings significantly more energy efficient.

Why it matters: Buildings account for 27% of annual global carbon dioxide emissions, by one estimate. While eco-friendly buildings aren't as sexy or exciting as electric cars, anything that makes them greener is a big win for hitting climate goals.

Driving the news: The IRA, which President Biden signed into law earlier this month, includes a 30% smart glass tax credit.

How it works: Smart glass, also called "dynamic glass" or "electrochromic glass," differs from regular glass in that its tint level can be adjusted on demand — think Transitions glasses, but for buildings.

Smart glass can help reduce a building's heating or cooling energy needs by about 20%, per a U.S. Department of Energy estimate.

What they're saying: "The demand here is just going to explode as a result of this," says Rao Mulpuri, CEO of smart glass maker View, of the IRA tax credit.

Yes, but: Smart glass is still pretty expensive, and building owners don't change out their windows all that often.

What's next: Commercial clients make up the bulk of View's customers, but multifamily residential buildings are the company's fastest-growing segment.

The big picture: Combined with the semiconductor industry-boosting chips bill, the IRA's green tech incentives could jump-start America's high-tech hardware industry, Mulpuri says.