Just before the Trump administration left the White House, Congress approved a small extension of the Solar Investment Tax Credit (ITC) as part of a COVID-19 relief bill. This prevented the credit from dropping to 22%, maintaining 2020’s 26% rate for another two years. After that, 2023 would bring the fall to 22%, and 0% for residential projects the following year. This gives homeowners a chance to save as much as possible on solar installations while they’re struggling through the economic pressure of the pandemic.
Despite the good this extension has done, it’s still not enough. If American households are going to ease their energy burdens and make the switch to green power, they will need far more time and assistance to make it happen. Especially now that President Biden has announced the ambitious goal of halving U.S. emission rates as soon as 2030.
This has prompted a proposal to extend the Solar ITC by another 10 years. The initiative is currently included as part of the American Jobs Plan, a $2 trillion package that also includes $100 billion for power grid upgrades. In addition, the plan aims to make separate solar energy storage installations eligible for the credit too. The current ITC only covers storage installations if they are included as part of a larger installation of a general solar panel system.
Extending
the ITC will Have a Profound Impact on Solar Sales
The U.S. Treasury predicts that the ITC extension will make it possible for the nation to achieve 100% clean energy use by 2035. Countless households will be able to afford to go solar, or even augment the usefulness of their existing solar systems by adding on a solar battery. Instead of being priced out of solar, millions of Americans will be able to affordably access a better class of utility that will reduce their lifetime energy costs as a whole.
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