Exciting news for solar slipped under the radar for many at the end of 2020. Just days before Christmas the federal investment tax credit (ITC) got a two-year extension for solar power! The Solar ITC was set to decrease to only 22% in 2021 but the U.S. Congress came in clutch with a big extension.
Green Tech Media reported, “The U.S. Congress on Monday passed a massive spending bill that includes $35 billion in energy research and development programs, a two-year extension of the Investment Tax Credit for solar power, a one-year extension of the Production Tax Credit for wind power projects, and an extension through 2025 for offshore wind tax credits — a significant last-minute boost for clean energy industries.”
This is big news for the entire renewable energy industry but especially for solar because so many homeowners rely on the ITC in order to go solar.
According to Linchpin, “While over 90 percent of Americans want solar, only about half want to pay for it, which is why 26 percent federal solar tax credits through 2021 are vital to the industry. Solar will continue to grow in demand as more businesses embrace it and report energy savings.”
The solar ITC has been a huge boon to the industry as a whole! It has helped to drive growth, sales and innovation all of which can only help the industry become better. Having the credit extended has been a huge relief to many solar companies and consumers alike.
According to Solar Power World, “This means that solar projects in all market segments — residential, commercial, industrial, utility-scale — that begin construction in 2021 and 2022 will still be able to receive a tax credit at 26%. All markets will drop to a 22% tax credit in 2023, and the residential market will drop to 0% while the commercial and utility markets will sit at a permanent 10% credit beginning in 2024.”
This extension didn’t happen by chance or overnight. There were a lot of supporters inside and outside of the industry, including congressional leaders and bipartisan mayors that have helped work hard to make this extension happen.
Abigail Ross Hopper, president and CEO of SEIA said, “We are heartened to see Congress step up to provide Americans with some relief after our country has been mired in a public health and economic disaster. This pandemic has taken an immeasurable toll on American families, and our deepest sympathies are with those who have lost loved ones and those who are suffering economically because of the ongoing crisis. Over the next few years, we have an opportunity to build a stronger, more reliable, and more equitable American energy economy, and the action Congress is taking today is a helpful down payment.”
Here at Solar Wholesale we’re excited to see what the future holds for the solar industry especially with this much needed extension. We’re especially excited to see just how many people we can help go solar in the next two years with this incredible advantage on our side.
We have always been dedicated to offering our customers the best prices, the best equipment and the best service around. Please feel free to contact us for a quote today!